OUTWARD TELEGRAM
Cypher/OTP F5006/361/10 CONFIDENTIAL
16 APR 1948 0.0.
No. 325
13
0.0.
DEPARTMENTAL DISTRIBUTION
FROM FOREIGN OFFICE TO NANKING
12th April, 1948.
CONFIDENTIAL
D. 2.35 p.m. 12th April, 1948.
Your telegram No. 319 [of 5th April;. Canton outrage].
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I approve the suggestion in the third sentence of paragraph 2, on the understanding that it includes all His Majesty's Government's claims. If you see no objection, you should emphasise that the final figure maybe more or maybe less, and suggest that in the circumstances Chinese Government may care to settle at £300,000 and so close the case.
2. As regards your despatch No. 226 [of 22nd March], it is doubtful whether claims by Chinese can be included (certainly not those employed by British firms as apart from those employed by the Consulate General) but this point is being considered and further instructions will be sent later. Certain items (such as Chinese assistant's claim for over £7,700 for mother's jewellery) would probably have to be excluded, and in general the inclusion of inflated claims whether Chinese or British should be avoided. It is noted in this connexion that you have instructed His Majesty's Consul General Canton that all claims must be scrutinised and supported as far as possible by documentary evidence. This is especially necessary since, except for His Majesty's Government's claim which we would expect Chinese Government to accept as presented, we must anticipate Chinese Government's insisting on all claims being scrutinised by a joint Anglo-Chinese claims commission or some independent body. In these circumstances, it would appear that the amount quoted is an outsize figure and that any increase such as that suggested in the penultimate sentence of paragraph 2 of your telegram under reference would be offset by deductions in respect of items mentioned above.
3. In a written answer to a Parliamentary Question on 6th April, Parliamentary Under Secretary of State stated that despite repeated representations on your part no progress at all had been made (in the matter of compensation for the Canton riots) and that the position remained as stated in Parliament on 16th February; no compensation had yet been paid. We will consider in the light of developments whether we can draw further attention to the matter in Parliament.
4. Reply to your telegram No. 333 will be sent shortly.
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