6064/1929.c.

S:MK:

CONFIDENTIAL.

F.W. Maze Esq.

Dear Mr. Maze,

38

COPY.

Enclosure No.2.

2nd October, 1929.

Your letter of 23rd September, reached Sir Cecil

Clementi yesterday and he had just time for a short

discussion with me before he left for Manila.

He asked

me to reply to you at once demi-officially on his behalf,

setting out the views of this Government in the light of

your letter, so far as the limited time available permitted

of their consideration.

The attitude adopted by the Chinese Government

has, as you no doubt realize, put an entirely different

complexion on the whole question of the Agreement. The

matter will be further considered here on His Excellency's

return at the end of this month, but I may explain at once

that the exclusion of Article V will be entirely

unacceptable to this

Government unless some much more

substantial quid pro quo can be offered by you than the

suggestions put forward in your letter, and I would add that

a "formal exchange of notes" regarding any concession

appears to this Government to offer no advantage over the

incorporation of the details in the Agreement, and, as at

present advised, this Government would not accept an

exchange of notes in place of incorporation of the terms of

the concession in the Agreement.

Moreover,

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