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and that so far as I was aware there was nothing further to be done in the matter for the time being. Mr. Chu then said that the Canton Government would not agree to change the title of the post and that, if such was the case, he would like to have from you a definite refusal to allow Canton to make the appointment in the old terms, so that he could show Marshal Li that there was nothing further to be done. I said that he had better make his

request in writing, when I forward it to you and trasmit

your reply. The enclosed letter is the result of this

conversation, and i shall be glad to know in what terms

Your Excellency desires an answer to be made.

4. I may say that the Canton authorities, and Mr. Chu in particular, had apparently hoped to secure a satisfactory settlement of this question in return for the courtesies shown to Your Excellency on your visit to Canton and they are correspondingly disappointed and sore at the outcome of their efforts. Mr. Chu said bitterly "we thought, after the expressions of friendship we heard fromthe Governor, that we could ask Hongkong to do us a favour, but they will not meet us even in a matter of such small importance to them as this.

I have the honour to be,

Sir,

Your Excellency's most obedient servant,

(Sd-) J.F. BRENAN.

Acting Consul-General.

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