51

2.

Lordship would do what was possible to respond in the spirit in which His Excellency had made his proposal.

[R. ends.]

3.

I consider His Majesty's Government and owners would

be well advised to authorise me to accept the Vice-Minister

for Foreign Affairs' offer (without prejudice of course to

our legal rights) because insistence on compensation will

merely lead to further indefinite detention of the two vessels.

4. I should be grateful for an early reply.

[R. begins. ]

Repeated to Shanghai No. 112, Commander-in-Chief No. 123.

[R. ends. ]

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