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(11) The Chiefs of Staff Sub-Committee, after a careful

examination, have reported (in Paper C.P.138(27)) that they

cannot guarantee that communication with Hankow can be kept

open during the period of low water on the river (December

to March 26th).

(iii) The Naval Commander-in-Chief has reported (Telegram

No.1015) in favour of protecting the bulk of British

property outside the Concession, which is more than ten times

as valuable as that within the Concession. This involves a

much larger force and a greater Commitment, and is opposed

by the Chiefs of Staff Sub-Committee on military grounds.

The Commander-in-Chief's telegram No.1019, of April 28th,

though sent to the British Minister at Peking to advocate the

re-occupation of the Concession, was quoted as setting forth

some of the risks of the operation :-

"Every day we wait defences of Yangtse are being

improved and added to. It is clearly another case of

the Dardanelles, and if we do not strike at once our

difficulties are going to be intensified.

I know it is a gamble, but no gamble has ever been won

by shilly-shallying, etc."

(iv) The United States Government is definitely

unwilling to participate in a second Note to the Nationalist

Government or in sanctions. A second Note, signed by only

four Powers, would accentuate the abstention of the United

States

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