Rece of State
dafree with Bir S. Grindle.
We had better discuss with 7.0.
now.
B.H.6.
20.728
to see
Cater
8
Jihina
we have:
but merely qua not
on a matter
༢.
اكا
Varying
unproclamen to Wought
Ms Ornoby fore
B.HB
n
Mm m
Draft subnitted. I ought perhaps,
however, to have made it clear in my minute above
that the suggestion that we should await developments is based on two grounds:-
(1) We have not yet been asked by the F.0. to
take any action to interfere with the negotiations.
having been consulted We have, therefore, no cause for complaint at present.
(2) The last argument put forward by Sir M.
Lampson in his telegram 718 of the 4th of July is a very difficult one to meet. In effect what Sir M.
Lampson says is this;
"The burning question of the moment is whether
or not China will agree to honour her bond. Our best and strongest means
inducing her to do so
is to make her realise that otherwise her credit is
doomed.
Our arguments on this head are having
some effect but they will be completely shattered
if
Page
Page
9
+ thi Finana Minisk
if Nanking finds that Canton can raise money
without difficulty in Hong Kong - which means
that there is no reason why they in turn
should not raise money on similar conditions."
It seems to me that we cannot effectively
rebut this argument and, therefore, by raising the
question now we run a serious risk of getting an adverse decision which may severely handicap
us in the future; whereas by waiting there is always a hope that something may arise from
Li Chai-Sum's visit to Peking, and the Conference
T.V. Soong+ of the militarists there with Mhariasive to
remove the obstacles which are at present likely
to be put in our path.
In li meantime no
damage is being done.
Palletisbuck
24/7
The only argument against that was
ay
Сиди. Катран
مسعد
そ
Whe the possibility
Chinese might contive to
That
li
Gruow
wony
"Elsewhere" 13. from the Russians.
But
an
a
watter of fact if we
And
going to adopt a foling of refusing stand
herbally
come in.
some American syndicali will
I think the der will do.
1083.
Yes.
after all we
ar
"ofer out to sell this
in the gearching
ging forests of fly Britain in cli Y.G. 27.7.
معه
11. To to (alc.) 88) Coup cons 31 Jung
age 9
age 9
Page
Page
12 Fo
(encions copy of 1.0. leto
to Sir Newton Stäbb
)
27 July
10
This recapitulates FO obyn's. which are
not unauswauble except for the last point
undoubtedly strong.
Hi Bank Soesn't matier
Wh. įs
Oh
even from
Our
point griew
Ka said for its now.
Howers pressure
much.
and
Ihan is somelting
participation.
/ 11
? wait for reply
13. Extant for 52802/28
14
15 F.o.
Palmussuck
1/8
103
att
Do.
18
aloun
by record
(Considers political objections to in bens accisive)
partic
3.8.28
The Foreign Office stick to the opinion formulated in the enclosure to 12. It will clearly
be very difficult to persuade them to alter that
opinion and although various arguments can be brought against their objections, it will necessitate rather lengthly correspondence. As there is at
present no practical issue to be settled it does
not appear desirable to enter into such correspondence at present. If any practical issue does arise it
may be in such a form that we shall be in a better position to rebut the Foreign Office arguments.
? therefore wait for further developments.
WB13
る
S. Camo 17.8.28
ge 10
ge 10Page 11