ruined or on the way to ruin.

In the second place, my

228

hope is that if the Canton Government realised that we should

resort to it rather than make a complete surrender of our

policy of reform and reconsideration of Treaties at the

bidding of Sovie t-inspired politicians, our diplomacy might

be greatly strengthened. At present the tactical advantages enjoyed by the Soviet-Canton policy (if that be indeed the policy of the Southern Government) are so great that I

do not see what is to prevent them driving us out of

every settlement in turn by a judicious combination of

strikes, false promises and mob violence. But if we make

it clear to them that we shall not acquiesce in any illegal

fait accompli, that no number of successful mob attacks

will either provoke us into sanguinary and futile operations

on land, or induce us to accept a complete surrender of

our treaty rights; that at whatever cost to our selves we

should, in the last resort, maintai maritime pressure upon

the aggressors, I think the hands of our Foreign Minister

might be greatly strengthened,

All the belligerent Chinese provinces want money, and they want it badly. They cannot get enough from Russia;

no I suppose can they raise an internal loan. Indeed

there are two things which they have not got, and cannot

obtain from the Soviets. One is money; the other is

sea power. And if we can (of course, without making overt or unnecessary threats) make them understand that the

Chinese question is not to be settled by moh violence, however well directed, by attacks on particular settlements, however successful, I think the offorts of our diplomatic

agents would be greatly aided. At any rate, this is a line

of action which might be worth considering if and when our present policy seems likely to suffer shipwreck.

Whittinghame,

January 11th, 1927.

4.

A.J.B.

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