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that it would be a great mistake to think that the agitation had not got strong backing from many elements in the country, and that the Ministry were seriously worried over the outcome. He could see an endless exchange of notes in which the British and Chinese Governments maintained their claims to the territory under dispute and he urged that we should endeavour to arrive at some compromise (he suggested something on lines of paragraph 7 of Hong Kong telegram No.8 to me). He begged that as a first step in this compromise the Hong Kong Government should be urged to take no action to. aggravate the situation and to release the foremost men arrested for inciting Squ.... He was told that there was little likelihood of this latter step being taken.
5. As a result of all this agitation I fear the matter has become one of "face". An un- compromising reply, such as is suggested in the last paragraph of my telegram under reference may well therefore provoke stronger resentment than seemed likely two days ago, I do not (repeat not) suggest that we should yield on any point of principle but reply might be conciliatory in tone and if some gesture were made on lines of () paragraph 7 of Hong Kong telegram No.8 to me it
would, I think, be useful.
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