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Mr. Brenan: We feel that your insistence means that you wish to suspend the negotiations. All that we have done so far could have been done before the Hongkong officials came up. This is not negotiating.
Mr. Ch'ên: We have met, and we now know that the point at issue is responsibility for the Shakee shooting, and this can be settled by an enquiry. You must remember you turned down our original demands.
Mr. Brenan: You should have pressed for a judicial inter- We would certainly national enquiry at the time. You did not. have welcomed an enquiry then. You have no right to spring it
on us now.
Mr. Ch'ên: This enquiry seems the only alternative to a break- down.
Mr. Brenan: If our counter-proposal is not accepted it appears that a break-down is inevitable.
Mr. Ch'ên: I must press the point of the enquiry to be referred to the British authorities. Our demands last year were rejected. No proposals were made in reply, and we therefore are not to blame for not having suggested an enquiry.
Mr. Brenan: You held an enquiry and called no foreign wit- nesses. Sir James Jamieson offered to give evidence, but he was not called.
Mr. Ch'ên: I was not aware of it.
Mr. Brenan:
demands.
Last year's demands were not really serious
At this stage the Chinese delegation retired for a few minutes. On returning,
Mr. Ch'ên: We will put our first proposal for an enquiry to you in writing, and in the meantime will consider your counter-pro- posal.
Mr. Brenan: In your writing please work out the implications of your case for an enquiry, so as to avoid the necessity for fur- ther correspondence; for example, how would you constitute the Court, and whether negotiations are to stop pending an enquiry? We are disappointed at this delay in the course of the negotia tions, for which you must accept responsibility. What of a communiqué ?
Mr. Soong: A joint communiqué is unnecessary.
Mr. Brenan: If negotiations are suspended it is with great re- luctance that we agree, and we must repudiate responsibility for the breakdown.
Mr. Chiên: And we cannot accept responsibility. It is the necessity of circumstances, and there is no call to admit or repudiate.
245
Mr. Brenan: We shall have to publish reasons for it, and we feel that your demand is not a proper demand at this juncture.
Mr. Ch'ên: I suggest the enquiry to prevent an absolute break- down. Our first demands last year were turned down out of hand several times. How could we demand an enquiry then? Even if the demands were impossible they would have formed the basis for further negotiations. The Conference as a whole is respon- sible for the breakdown. What has happened is the necessary course of events.
Mr. Brenan: A judicial enquiry which could award damages is one thing. Negotiation involving a bargaining and so forth is another. You have switched from negotiation to a judicial enquiry because the conference is not going to your liking.
Mr. Ch'ên: To avoid an absolute breakdown we want the enquiry to fix responsibility. That is part of the negotiations, and we are prepared to abide by the findings.
Mr. Kemp: The objection to the enquiry proposal is that it may leave the boycott in force for a year.
Mr. Ch'ên: The Chinese delegates cannot accept responsibility for a breakdown; hence we suggest the enquiry.
Mr. Kemp: Why not remove the boycott now, leaving over the question of the enquiry? If a year hence an enquiry should re- sult in your being found to blame you would then have to take up the financial burden, and you would be less able to do so after another year of restricted trade.
Mr. Ch'ên: A year lience we may have more money. I wish to make it quite clear that the enquiry proposal is not an alternative As far as respon- to this conference, but a continuation of it. sibility for the suspension of the conference goes, counter-state- ments will be called for, but in the statement we issue we do not intend to raise this question because it would be unfair and invidious.
Mr. Brenan: Your demand for an enquiry suspends the confer-
ence.
Mr. Ch'ên: And so does your refusal to pay compensation.
Mr. Brenan: For that we are quite prepared to accept respon- sibility.
44
Mr. Ch'ên: I object to the word " suspension": adjournment "would be better. "breakdown.
CE
> recess or
We frankly do not want a
Mr. Brenan: You are going the best way about it.
Mr. Ch'ên: It is not a suspension. It is an adjournment to consider new proposals. We are all anxious for an carly settle- ment, but a settlement is decidedly for your interests; hence we
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