9

little chance of knowing what goes on. I agree

therefore that it is undesirable to stir this

matter up if it can possibly be avoided. We do

not want to give Nationalist China a fresh cause

of complaint against Hong Kong or a fresh opportuni

ty of raking up all the scandals connected with the

emigration of Chinese labour to British territory.

An additional reason for going slow is

that in a few weeks we shall probably be faced

with a demand for Chinese labour for the New

Hebrides. From the point of view of Hong Kong

and British interests in China generally it will be most important to see that no exception can be taken to any arrangements made, and it might be

extremely awkward to establish a precedent in the

interval for recruitment of Chinese labour to

Sarawak on a two years indenture.

I suggest therefore, we discourage Hong

Kong from proceeding with this matter on their own

initiative. If the Sarawak Government raises the

question, we ought to consult the Foreign Office

as to the possible effect in China, and we ought to

try to get the terms so modified that we could

least put up a plausible case against their being

an indenture.

6.6.27

14/1 2 To Sov. Conf.

cons

G.G.

Задне

B.H.6.

10.6.17.

atonee

17 JUN 1927

at

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