12
3.
Government wat expect to be presented with a claim for
compensation in respect of the losses caused to Brisish
subjects in recent years by pirates, on the ground that
these losses were das to the fact that the Chinese
authorities were incapable of suppressing piraticul motivities themselves and refused to permit ropressivo action to be undertaken by His Majesty's foress.
I mrgest the bove course of lion for your
consideration because I feel that while in the
sircumstances there is no alternative but to put in # *
full and reasoned reply to W. Tang's note, there is a risk that the very nature of that reply, if unaccompanied
by any expression of our view as to the nature of the
claim put forward, may lead the Chinese Government to
continue the diylematic serrespondence rather than let
the claim drop. I do not mean to imply that the suggested
counter-claim would necessarily succeed before an
international tribunal, bat she facts which would be
brought out in any men proseedings would be so disagreeable
from the point of view of chinese prestige that the
suggestion may, perhepu, indage the Chinese Government to
refrain from pressing the case of the "Irene" at any rate
to
to the extent of asking that it should be submitted to
arbitration.
with great truth and regard,
sir.
Your obedient gervant.
(For the georetam of state)