[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

IMMEDIATE. SECRET

CHINA.

Cypher telegram to Sir M. Lampson,

Foreign Office, 14th April, 1927.

No. 288.

(Peking)

8.30.p.m.

45

My telegram No. 279.

Following is a summary of the conclusions and

recommendations submitted by the chiefs of staff in

their preliminary report of the question of possible

sanctions for the Nanking outrages.

1. In present conditions the destruction or

occupation of the forts on the Yangtse and of the

arsenal at Hankow should be abandoned as a measure of

sanction, though, if circumstances change, it might

again prove useful:

2. In present conditions the re-occupation of

the British concession at Hankow, involving the

maintenance of a military garrison there, is not

considered a feasible operation:

3

The seizure of the Cantonese Fleet is a

feasible operation which should exercise some effect

on the Cantonese. We feel bound to mention, however,

that the disturbed situation at Amoy has been improved

owing to the efforts of the Southern Chinese naval

authorities:

4.

Although the seizure of Customs revenues is

not a strictly military sanction, we venture to

recommend that the Secretary of State for Foreign Affairs should consult the Consul-General at Shanghai

in.

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