In any further communication on this subject, please quote

No. F 4032/3413/10

and address-

not to any person by name,

but to-

The Under-Secretary of State,"

Foreign Office,

London, S.W.1.

52847

RECEIVED

6 AUG 1928 COL. OFFICE

FOREIGN OFFICE,

S.W.1.

3rd August, 1928.

Sir,

12

(12)

I am directed by Secretary Sir Austen Chamberlain to refer to your letter No. 52842/28 of the 31st July transmitting copies of telegrams between the Secretary of State for the Colonies and the Officer Administering the Government of Hongkong on the subject of the recent negotia- tions for a loan to Canton and to state for the information of Mr. Secretary Amery that Sir Austen Chamberlain's views were embodied in a letter from Sir Victor Wellesley to Sir Newton Stabb a copy of which was enclosed in Foreign Office letter No. F 3655/3413/10 of the 27th July. An advance copy of the Hongkong telegram enclosed in your letter under reference had already been communicated to this department and Sir V. Wellesley's letter was written after full consideration of the views expressed by Mr. Southorn. Sir Austen Chamberlain fully appreciates the importance to Hongkong of cultivating friendly relations with Canton by rendering financial assistance or other means. He considers however that the political objections to foreign, and especially British, participation in loans to any government in China at the present time are so serious as entirely to override all considerations of the local benefits that might accrue from the adoption of such a policy

The Under Secretary of State,

Colonial Office.

I am,

Sir,

Your obedient Servant,

Gange Mounsey.

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