2.

British public opinion not only here but at home with us in abandonment of extraterritoriality which

was more important than he perhaps realised.

4. Finally he offered to recommend to Central

political committee reservation of Shangi alone, But it would have to be strictly limited as to time.

I told him that was not enough, and that question of time was one concerning the whole treaty, and pressed

him to increase his bid: but he would not respond

and, talked of a breakdown, and of the disastrous

results it would entail: he was sitting on safety

valve and all sorts of unpleasantness would result if

we did not settle before May 5th. I enquired why

this indecent haste? and why talk about a breakdown?

it was for him to decide and if he wished to break

off (? gps. und.) it be, but China at a critical moment

of reconstruction could hardly be the gainer if she

forfeited our goodwill. I should not personally admit

any breakdown; rather, as in normal negotiation, that

we had reached a crucial stage where the two govern-

ments must sit back and take full stock of the position

in the hope of finding further points of contact.

His haste for May 5th was purely his domestic concern:

to me it smacked of unwise haste over a matter of

first class importance to the whole fabric of our

future relations.

5.

Several times I purposely drew him on other

ground in order to show my lack of anxiety e.g.

shipping, personal status, etc. But he kept coming

back to his offer of Shanghai.

6.

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