5155

Paraphrase Telegram from the Governor of Hong Kong to the

Secretary of State for the Colonies.

Dated 22nd January.

(Received Colonial Office 4.48 p.m. 22nd January, 1927).

Addressed to Secretary of State for the Colonies

repeated to Peking Telegram No.7 Canton and O'Malley

begins With reference to Foreign Office telegram No.35

Telegram No.36 to Peking, it is felt here that proposed

action is conceding to force points which ought to be settled by negotiation and that the proposals made by

His Majesty's Government presuppose a modern Government

on orderly civilised lines such as does not exist at

present time in any part of China; for almost everywhere there is civil war and, except over main centres of

population regional authorities exercise very loose control.

In allowing Canton to secure Washington surtaxes

illegally and unconditionally after prolonged anti-British boycott followed by far reaching surrender of privileges now contemplated consequent on seizure of British

concession at Hankow, His Majesty's Government are, we feel, displaying a weakness which will encourage extremists in tearing up treaties and repudiating obligations and so lead eventually to war.

So long moreover as Nationalist Government is not

recognised we cannot insist that it should assume obligations in return for what is surrendered: if

recognition is accorded it we could so insist.

There is no intention, we presume, that Great Britain alone should give up privileges and treaty rights while other Powers (e.g. Japan and France) continue to enjoy them.

Telegram No.36

The following are our observations

on

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