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Henkow and to give fresh instructions to Sir Miles

Lampson and T. O'alley.

Sir Austen Chamberlain then referred to Sir

Miles Lampson's telegram o.8 of January 3rd, in which

he had outlined practical suggestions for giving effect

to the Memorandum of Policy approved by the Cabinet

on December 1, 1926 (Cabinet 61 (26) Conclusion 4).

This had been examined in the Foreign Office, who

were in entire agreement with Sir Miles Lampson, and

had prepared a draft telegram of instructions on the

subject.

The Secretary of State for Foreign Affairs

concluded by setting forth the policy which he

proposed a policy which was adopted -s part of the

Government's whole policy towards China, as set forth

in the Conclusions given below.

Shortly after, the Chiefs of Staff of the

three Fighting Services, Sir Arthur Hirtzel (Permanent

Under Secretary to the India Office) and Field Marshal

Sir Claude Jacob (Military Secretary, India Office)

were introduced.

The First Sea Lord and Chief of the Naval

Staff made a verbal statement in regard to the draft

Report of the Chiefs of Staff Sub-Committee on the

subject of the defence of Shanghai, in the course of

which he added to the Conclusions and Recommendations

in Poragraph 7 a fresh Conclusion (c) to the effect

that the recommendations as to the British forces

required to be sent out to Shanghai were based on the

escumption that the remainder of the estimated force of

one Division would be supplied by other Powers, and

that if these Powers were unwilling to co-operate and

it was still desired to hold Shanghai, the whole

Division would have to be supplied from British

Bources.

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