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Hongkong it might be able to hold this Concession.

We have not, however, sufficient local knowledge to

nako a definite recommendation on this subject, and we

think that the arrangements at Amoy had best be left

to the Naval Commander-in-chief in consultation with

the military authorities at Hongkong, and the local Consular

representative.

Canton.

10.

The situation in regard to the defence of

the Shameen, where the foreign Concessions at Canton

are situated, are fully set forth in a Momorandum

by the General Staff attached to C.I.D. Paper 722-B,

the conclusions of which are summarised in the last

paragraph as follows:-

and

(a) Any action taken with regard to Shanoon which involves military consequences will have to be taken in co-operation with, with the prior agreement of, the French, who hava a definite share in the foreign concession.

"(b) The evacuation of Shameen will almost certainly involve its looting and possibly its destruction by the Cantonese.

"(c) The institution of a blockade with- out the evacuation of Shameen will almost certainly produce a demand for military protac- tion, If this demand is to be met, a garrison of two companies of infantry, with machine guns, and two sectious of pack artillery is considered the minimum that could safeguard itself and also the concession.

"(d) Owing to navigational difficulties, a garrison in Shameen could quite easily be cut off and marooned.

"(e) If Shameen is cut off from the outside world, a combined naval, military and air operation would have to be undertaken to relieve it. It is not impossible that such an operation would land us in extensive commitments.

"(f) The operation described in (e) would constitute an act of war against China.

"(g) Unless H.M. Government is prepared to face the above liabilities, the evacuation of Shemcen should be a necessary preliminary to the institution of a blockado".

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