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2

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151

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Rear-Admiral force Yangtsze saved a disastrous situation.

The British forces available here were utterly inadequate

to keep the Concession for any length of time and if employe

ed now to retake the Concession by force would create

similar situation immediately with the alternative of

another humiliating retirement or firing followed by speedy

evacuation equally humiliating and most hazaedous to the

lives of more than 600 Missionaries and others now moving

slowly to safety through Szechwan, Hunan and Hupeh and will

be playing into the hands of Extremists (?) if prestige is

to be recovered it must be done later at a time chosen by

us when adequate forces can be made available to make quite

certain of complete success and when the certain result boycott can be replied to by prompt and effective blockade

but to court failure by such policy now will be merely

further disastrous blow to prestige and would worsen the

situation from every point of view. Therefore the present

policy must be to poi compromise by negotiations, throwing

on the Nationalist Goverment the onus of fulfilling their

undertaking to preserve law and order and taking a joint with Sine-British Council under the Chinese Government katxthey

representations to the Nationalist Government that they

are testing the case in the eyes of the world for their

ability to afford adequate protection and justice to

Foreign life, property and trade. We do not anticipate that British trade will be able to function permanently

under such and arrangement but the remedy can only be

applied later. Meantime the Nationalist Government is

likely to make a genuine endeavour to control the Communists

on account of their very early need of funds. The question

of the date of resumption of British business here must

be left entirely to the decision of Mr. O'Malley who will

choose the moment that best fits in with his negotiation."

Mr. Humphrys' message to Sir Robert Waley Cohen.

ends

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