117
།:།།།།།
PUBLIC RECORD OFFICE
Reference :-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON
| ALLY WITHOUT PERMISSION OF THE
BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
222.
ENCLOSURE 2 IN NO 28.
[TELEGRAM.]
From H.M. Consul-General, Canton (No. 64), to H.M. Minister,
Peking.
(Despatched 19th July, 1926.)
Confidential. My telegram, No. 63. Negotiations began on 15th July with an opening address by Minister for Foreign Affairs welcoming British delegation and expressing hope in general terms that settlement would be reached which, while assuring to British nationals friendly and profitable market in South China, would enable Chinese people as represented by Nationalist Government to continue unhindered with work of unifying and modernizing China.
Conference then adjourned to following day, when Chinese delegation produced long written statement giving their views on origin of boycott which they trace back to what they describe is massacre at Shanghai on 30th May, and in course of which they try to fix on the British the responsibility for the Canton incident of 23rd June.
Before putting forward any proposals for a settlement they desired to have our views on this statement of the case which they proposed to publish. We protested that to conduct negotiations in the Press would inflame public opinion and make an amicable settlement of controversial points extremely difficult, but Mr. Ch'ên insisted on what he called the new diplomacy. We accord- ingly prepared a written reply refuting the allegations made against the British and presented it to-day, after which we ex- pressed hope that Chinese delegation would abandon these methods of public controversy and settle down to negotiate an agreement.
Mr. Ch'ên then asked to speak with me privately, when he urged that Hongkong should help Canton Government with replied money to get rid of 40,000 persons who were unemployed and living on a Government dole as a result of the boycott. definitely that Hongkong would not pay a cent for this purpose, which was regarded as blackmail, but, in order to enable Canton Government to show their people that they had got something out of the settlement, Hongkong would lend money for develop- ment of l'rovince, and I mentioned their willingness to make properly secured loan for construction of Whampoa port, together with loop railway, if amount was within reasonable limits. Mr. Ch'ên appeared much impressed with Whampoa idea, and it is possible solution may be reached on these lines. Next meeting is on 21st July.
Repeated to Foreign Office. No. 31.
ACTING CONSUL-GENERAL.
223
ENCLOSURE 3 IN No. 28.
NOTES OF PROCEEDINGS, No. 3.
ADDENDUM (Notes of Proceedings, No. 2).
With reference to our suggestion that it would be better for the Chinese delegation to proceed to their definite proposals, Mr. Ch'en at one point remarked that the investigation of the subject discussed in his speech might settle the whole question.
Before the Chinese delegation consented to hold over the publication of Mr. Ch'ên's opening speech at the second Meeting of 16th July until the British delegation had replied, the Chinese delegation left the room to consider the matter in private. They were absent about five minutes, or less, and returned with the conclusion mentioned in the notes of proceedings No. 2.
The third meeting of the Conference took place on the 19th July at 10.30 a.m.; arrangements as before.
The Consul-General read a statement in reply to the Chinese delegation's statement made at the second meeting. A copy of this statement is attached. At the conclusion of the reading of the document, the Consul-General suggested that it was unneces- sary to publish either of the two statements: that of the Chinese delegation or that of the British delegation, but that if the Chinese delegation considered publication of their statement was neces- sary he hoped they would give equal publicity to the reply.
Mr. Ch'en then stated that he wished to correct an error. The Chinese delegation had no intention to bring Shanghai into the ambit of the Conference. It had only been brought in as a necessary background for the events in the Luang-Kiang. It was not an immediate cause, and to that extent the statement was not correct. He said Shakee was the immediate cause. The Consul-General replied that this background of Shanghai had Leen sketched in by Mr. Ch'ên, and contained assumptions which had to be answered. After some general discussion it was agreed
to omit further consideration of Shanghai from the ambit of the Conference. Mr. Ch'ên stated that they on their side saw the immediate cause in the Shakee incident. "Let us," he said, deal with the direct and immediate cause.** The Consul-General agreeing, the Chinese delegation retired for some eighteen minutes.
On their return, Mr. Ch'ên stated that they had read the British delegation's statement, and that it required further study and an answer in writing to avoid misunderstanding, and proposed to adjourn to Wednesday, the 21st July.
The Consul-General appealed to Mr. Ch'ên to " cut out" fur- ther written statements, and to get to the subject of the Confer- ence on the ground that a discussion by written statements would