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2.

double nationality to be treated as Dutch, subject to registration and communication of list of registered persons to Chinese authorities. Such an arrangement would be acceptable to us, since it would seem impossible to decline to communicate

lists of persons so registered to Chinese, but we

do not know to what classes of persons Dutch

arrangement has in practice been applied, and it seems probable that the South, if not Koo, would

endeavour to limit our arrangement to certain

classes of Anglo-Chinese. If so, it will be

necessary to consider what concessions we can

make, but in the first instance you should try for

an arrangement as wide as the Dutch. Governor of

Hongkong is being informed of position and instructed.

to communicate his observations to you direct, and

you should keep in touch with him in addition to

informing me of any proposals Chinese may make.

With regard to persons of Indian descent in

Turkestan the arrangement recently made between

His Majesty's Consul-General at Kashgar and the

Taoyin should suffice to eliminate all causes of

friction and to demonstrate our desire to meet

the Chinese in a friendly spirit (see Legation

despatch No. 796 of November 3rd, 1926).

3.

Shipping and navigation laws. Sir

Skinner Turner is being consulted on the point

raised

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