30045/27.

Be

186

PARAPHRASE TELEGRAM from the Secretary of State for the Colonies to the Governor of the Straits Settlements.

(Sent 8.25 p.m. 19th January 1927)

P.A.C.18/1

Mr.Beckett 19/1

Mr.Ellis

Sir G. Grindle

19.

xSir S.Wilson

S.H.W.at once

conson.

#t

-mm

2626

19.1.27

1

سنة

A/M

CI?.

im

اعسا

2071/27

Copy/to F.O.Lf.

to be attached to 30014.

Secret. Chinese situation.

O'Malley has been authorised to negotiate settlement of immediate difficulty of Hankow concession on basis of majority control of administration by Chinese. He has also been authorised to make generous offer to relinquish a number of treaty rights and privileges provided that Cantonese authorities are prepared in turn to negotiate a general settlement. Recognition of validity of Chinese Nationality Law would be included in this offer(see my telegram 11th January with statement that Chinese would be expected to make some reasonable arrange- ment on the lines of that come to with the Dutch in order that our claims with regard to British subjects of Chinese race going to China temporarily for particular purposes and not habitually resident there might be met. In the event of the negotiations being declined or being rendered impossible Chen will be informed that it is our intention to take such steps as we think fit.

In any case regard for the protection of British lives no less than the disastrous effect which would be produced on the British position throughout the East by surrendering Shanghai to violence precludes the possibility/our policy being based on either the evacuation or the surrender of Shanghai. All preparations are therefore being made for the defence of the international settlement by force.

This general indication of the policy of His Majesty's Government is conveyed to you at the earliest opportunity

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