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unconditional protection of His Majesty's Government in

any and every enterprise in which they may choose to engage.

In return for such protection as can be afforded they must

be prepared to take reasonable precautions and to submit to

reasonable restrictions. But provided they conform to

this requirement they seem to me to be entitled to as much

. protection as His Majesty's Government can give in troubled

areas, even if this involves some expense to His Majesty's

Our position in China has, after all, been

Government.

7.

built up by seamen and merchants who have been ready to

take some risks and it is not in the national interest to

discourage enterprise or to allow our people to be ariven

out of a position which that enterprise has built up.

When I discussed this problem with the Commander-

in-Chief during his visit to Peking in September last, I

understood him (subject to correction) to be in general

agreement with the above statement of the position and to

hold the personal opinion that the shipping companies

should be assisted as much as possible by advice on internal

defence measures and by the provision of armed guards from

His Majesty's Forces though only on condition that they

were prepared themselves to pay for such guards; and he

favoured adherence to the declared intention of terminating

the present arrangements for the provision of armed guards

at the end of March next partially as a means of pressure,

so I understood, to bring the shipping companies round to

a proper realisation of their responsibilities. The

Admiral used as an illustration of his point that when the

management of a football team in ngland require extra

police for duty at football matches they themselves pay

the

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