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Shanghai as quickly as possible; but that, until the

co-operation of other Powers in a scheme of rein-

forcement had been obtained, it was of the utmost

importance that no hint should be made public that

we were considering any large military movement, and

that, in any necessary outside inquiries the War

Office should make every effort to secure the

preservation of secrecy:

(f) That the Trading and Blockade Sub-Committee

of the Committee of Imperial Defence, of which the

Chancellor of the Duchy of Lancaster is Chairman,

should assemble forthwith, in accordance with the

suggestion made separately by the Lord President of

the Council and the Chiefs of Staff Sub-Committee, to

report on all the possibilities of putting economic

pressure on the Nationalist Goverment of South China,

by blockade or by other measures, whether by inter-

national action or, in the last resort, by the British

alone. The Chairman was authorised to consult Sir

Charles Addis, the Chairman of the Hong Kong and

Shanghai Bank, and was naked to discuss with him,

inter alia, the question of how far it was feasible

and desirable to continue to use the closing of

British banks at Hankow as a lever for securing the

return of the Concession.

(g) That the Secretary of State for Foreign

Affairs should be authorised to send the fallowing

telegram (which he drafted during the meeting to give

effect to the views of the Cabinet) to Sir Miles

Lampson :-

"We also should like to insist on return of

concession before entering on any negotiations.

You and Mr. O'Malley will be the best judges

whether this is possible or whether it would

lead to immediate breakdown of the conversations

and

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