91

The militery questions before the Cabinet, then,

were as follows :-

(1) Should the Indian troops be sent back to

(11)

India on the arrival of the two British

Brigade s?

Should the suspensi n of the naval

Com an der-in-Chief's order for the second

Brigade to proceed to Shanghai be lifted?

On the political side the Cabinet had before them

Mr.O'Malley's telegra No.74, of February 15th, to Peking,

giving particulara of the second breakdown of his

negotiations with Eugene Chen, and Mr.Lampson's commentary

thereon (Peking telegram No.296 of February 17th).

From these telegrams it appeared that Eugene

Chen professed to be ready to sign the agreements in regard

to Pankow and Kiukiang concessions, as well as to give

assurances not to use force or to countenance the use of force

to effect changes in the status or the concessions and

international settlements, but that, in addition to a protest

against the landing of troops at Shanghai, after the

signature he insisted on issuing a statement (apparently to

be addressed to the world at large rather than to this

country in particuler) to the effect that no Chinese

authorities except the Cantonese Nationalist Government were

entitled to negotiate with foreign Powers regarding

settlements (For text of proposed statement see Appendix).

It was not clear whether this was intended merely as a formal

protest or whether Eugene Chen's signature would be

conditional on our pre acceptance of this latter statement,

latter being an impossible condition, as ncgotiations have

already been opened with the Peking Cabinet.

Mr. O'Malley and Mr. Lampson appeared to think

the

that when it came to the point Mr. Chen would still refuse to

aign, but were opposed to the signature of the agreement in

the circumstances.

The Cabinet, however, agreed unanimously

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