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embarking on the construction of a new port. Did the
Chinese, he asked, intend to encourage trade to go to
Whampoa by means of special concessions or tariffs ?
Colonel Li said that was their idea. The Ambassador
said that in that case wider issues would be raised
affecting our treaty position; but as those were matters
for the Central Government and not for the local authorities,
it was no use discussing them now.
Colonel Li said that the Chinese authorities were very
anxious not to antagonise the British over this port
development scheme since in case of war with Japan all
other ports would be blockaded and the Chinese would have
to look to the British to facilitate the import of arms,
etc. through Canton. The Chinese were doing all in their
power to develop their railways, roads and harbours, and
it was no secret that all this had a military purpose.
The Ambassador replied that the Chinese Government
had a perfect right to develop their communications and ports and a perfect right to ask us for assistance in such
work. We also had a perfect right to give such assistance. What political object the Chinese might have in building the railways, etc. did not concern us, since our interest in the matter was purely economic and was not directed
against anyone. He wished Colonel Li to understand and to make clear to the Mayor that we could only discuss these
matters on the economic plane. It was quite impossible for us to enter into any political or military discussions or considerations: these must be rigidly excluded. We could engage in nothing which could be interpreted as aimed at any third party. He had neglected no opportunity of making our position quite clear in this respect since
/his