This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.

78

FROM CHINA.

Decypher.

Sir M. Lempson. (Peking on tour).

April 24th. 1930.

D.

12.40.p.m. May 3rd.1930.

9.00.a.m. May 3rd. 1930.

No. 126.

-OOC

IMPORTANT.

consider??

My telegram No. 121. 49

Minister of Finance raised the question with me

April 22nd. I explained that certain points remained

to be cleared up and possibly His Majesty's Government

would be asking me to take direct hand in negotiations

shortly. But was it not simplest for China to accept

Article 5 of originally agreed draft when all would be

plain sailing? lie said impossible: it would cause an

outcry.

I finally manoeuvred him into tentatively offering

to ignore any preventive measures that Hongkong might

adopt on Chinese behalf. He seemed to welcome this but

said he must ask Maze to work it out first. As this

tallies with what I believe to be alternative Hongkong

plan I warmly encouraged him. But perhaps nothing will

come of it.

Addressed to Foreign Office No. 126 April 24th; repeated to Peking, Hongkong,

copy to Shanghai.

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