SECRET
CABINET 11(27)
Conclusions of a Meeting held in the Prime Minister's room, House of Commons, on Thursday, February 17th, 1927, at 6.0.p.m.
42
89
CHINA
(Previous Reference: Cabinet 10 (27) Con- clusion 2.)
The Cabinet met as a matter of urgency to
decide political and military questions arising out
of the latest developments in China.
The military position as reported to the
Cabinet was as follows :- General Sun Chuan-fang's
army covering Shanghai had sustained a reverse within
15 miles of Hangchow, which was expected to fall
immediately, and news was received during the meeting
that Hangchow was being evacuated. Sun's forces, some
of which were reported to have gone over to the
Cantonese, were falling back on a prepared position.
But it appeared not impossible that within five days
Cantonese troops might reach the vicinity of Shanghai,
where trouble might be apprehended either from the
arrival of beaten troops, possibly with Cantonese in
close pursuit; from boycott and strikes, esulting in
food shortage and riot; from a desire by either side to
use Shanghai as a bane; or, less probably, from an actual
attack by Cantonese troops.
In these circumstances the Naval Commander-in-
Chief, China, in accordance with the authority given him
by the Cabinet (Cabinet 8 (27) Conclusion 2 (b)), had
ordered the second (British) Brigade to proceed direct to
Shanghai, where it would be necessary, for reasons of
accommodation, to billet the troops on British property
outside the settlement limits, but within the Municipal
developed area, where their presence was essential for
tactical reasons (Naval Commander-in-Chief to Admiralty
No.