33
END
2.
areas. This is as much of benefit to the Japanese as to
anyone else, and I am afraid I find difficulty in believing
that if gambling and smuggling were to cease within the
concession, the guerrillas would cease to be paid.
4. With these considerations in mind, as well as those
contained in my telegram No. 852, I think it would be useful
if Mr. White were to prepare a tentative draft of the 2nd
paragraph'of the formula in your telegram No. 1590. I should
prefer, however, that this draft should not be shown to the
Japanese until I have time to consider it. I am not
unwilling that, within the administrative framework of the
concession, efforts should be made to prevent abuses to which
exception might properly be taken by the Japanese and in this
connexion there seems no objection to confining the operations
of exchange business to the holders of licences. On the other
hand I am not prepared to give assurances which would put an
end to the personal liberty of residents within the settlement,
since not only would that have the effect of undermining the
Chinese position but it is also quite contrary to our conception
of municipal administration.
Repeated to Shanghai No. 1236, Tientsin No. 178,
Paris Saving No. 1061 and Washington Saving No. 44.