PUBLIC RECORD OFFICE

Reference :-

EPERNIC.O.882/11

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

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We told him that we very much would respect his confidence. appreciated his friendly candour, and that he could rely on us. Eventually it was agreed that we should report the following matters only:-

(1) Mr. Foo's explanation of the objects of his mission. (2) Sincerity on both sides.

(3) The mention of the "economic terms, and Mr. Foo's suggestion that the question of strike pay and reinstatement be considered together.

(4) Impossibility of the Hongkong Government or Hong kong to agree in principle to strike pay or to compensation for non-reinstatement.

(5) The conversation regarding the offer of the Hongkong merchants to pay a sum not exceeding $300,000; and the temper of the English residents.

(6) Question of loan.

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(7) Discussion of political terms.

12. Before we separated we asked each other what our views were as regards the result of our long conversation. We all agreed that, as practical men, we should face reality, and not be carried away by over-enthusiasm; that nothing tangible had been achieved by the informal conversation, though undoubtedly a friendly rapprochement had been re-established by our heart-to- heart talk. Both sides held the view that the result of the con- versation had proved the necessity for the meeting, for it had removed certain misunderstandings, had afforded an opportunity for a full and frank discussion of the various questions and had created a spirit of friendliness and mutual goodwill. Mr. Foo said, and we concurred with him, that it was not expected by either side, before the meeting, that anything more than this could be accomplished; and we also agreed not to raise undue hopes so as to prevent any possible disappointment. Mr. Foo promised to do his utmost to bring about a satisfactory settle- ment, and we expressed the same sentiment.

13. Mr. Foo left for Canton at 10. a.m. on the 4th March, and we returned to Hongkong by the afternoon boat the same day. Immediately upon our arrival we called on the Colonial Secretary and the Secretary for Chinese Affairs, and gave them a brief account of the conversation we had with Mr. Foo in Macao.

14. In the quietude of our return voyage, we again reviewed the whole conversation, and we reached the following conclu- sions: -

(a) Our visit did not fail of its object.

(b) Mr. Foo Ping-sheung is friendly to Hongkong.

(c) Mr. Wong Ching-wei, if not also the Canton Govern-

ment, seems now genuinely desirous of a settlement.

(d) Mr. C. C. Wu does not now loom so largely in the picture.

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(e) We must discuss the question of payment, we can at the same time bring out our counter-claim for damages sus- tained by us through the boycott and strike.

The Canton Government does not seem, financially, to be on its last legs, or to be in fear of imminent internal danger. (This conviction was born of our close observation of Mr. Foo's talks and demeanour. It may be interesting to know that Mrs. C. C. Wu came down from Canton via Macao on the 3rd March to take her mother-in-law and chil- dren up to Canton.)

(g) While we should carefully uphold our dignity and prestige, we ought not to repeat the mistake, committed by some English leading residents at the beginning of the strike, of belittling the strength of our enemy, or placing too much hope on possible internal dissensions in the near future to solve our difficulty.

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(h) We should follow up this informal, initial conversation spirit of conciliation, though we need not thereby sacri- fice either our dignity or our material interests.

15. In conclusion we express the hope that, in the circumstance set forth in this report, our discussion with Mr. Foo Ping-sheung on the matter of the $300,000 is not considered by the Government to have jeopardised our case. We consented to the discussion not without careful and earnest consideration, and a full sense of our responsibility. Whatever we did, we did for the best interests of the Colony, for which we have laboured hard and unceasingly for over nine months. We are conscious of so little accomplished, but perhaps it is not too much to hope that the tiny seed which we have sown in Macao may, with proper nurture, bear fruit.

We have, &c.,

The Honourable

DEAR SIR,

Mr. E. R. Hallifax, C.M.G., C.B.E.,

Colonial Secretary.

SHOUSON CHOW.

R. H. KOTEWALL.

ENCLOSURE 3 IN NO. 12. Letter to Mr. Fu Peng-sheung.

5th March, 1926.

We returned to Hongkong yesterday and we have this morn- ing personally reported to H.E. the Governor of Hongkong our conversation with you, H.E. heard with pleasure that the conversation was so friendly and that efforts were made

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