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PUBLIC RECORD OFFICE
Reference :--
C.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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just indicated, I should be pleased to put it up to His Majesty's Government. I pointed out, however, that if he contemplated attacking such questions as recognition and the Customs surplus, this would involve consultation with the other interested Powers and entail a long delay.
He said that, so far, the idea was entirely his own, but that he would broach it to some of his colleagues in the Government, and later on he would ask me to dine privately with him at his home in order to discuss the matter further.
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When, therefore, the promised invitation arrived two days ago, I hoped that Ch'ên would have something interesting a to say. The dinner took place, à deux, last night at his house in pleasant host, and the country at Pak Hok Tung. He makes
can speak interestingly on a number of subjects. The dinner was excellent, and he regaled me with music by Chaliapine and Kreissler on an elaborate gramophone which he has just imported from Hongkong, but when at last we settled down to talk seri- ously I was disappointed to find that he had nothing new to propose in the way of a plan for removing the boycott.
It appears that he had asked me to dinner in order to convey to me privately and in as courteous manner as he could, but never- theless clearly, the threat that his party intended to extend the boycott to the Yangtze unless we came to terms. He assured me confidently that Cheung Kai-shek's army would capture Hankow within three days, and that Canton had reached a temporary understanding with Chang Tso-lin, who would seize the oppor- tunity for revenge on Sun Ch'uan-fang, if the latter should attack the Nationalist forces.
Ch'ên made much complaint about your recent speech at the opening of Lane, Crawford and Company's new premises, in which you described the Strike Committee as a band of organized banditti and pirates. He said that it had created an unfortunate impression in Canton official circles at a time when the negotia- tions were still in a state of suspense, and he endeavoured to make it an excuse for the increased virulence of the anti-British agita- tion which has been noticeable for some weeks past.
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I replied that from the very day the negotiations were adjourned, and long before you made your speech, a renewed and violent anti-British campaign had been conducted by the Strike A Committee with the assistance of the Canton Government. large number of new pickets had been recruited, and had been armed with rifles furnished by the Government, and that a " strike support week, with processions, speeches, flag-days and demon- strations was now in progress, in which it was reported that high Ch'ên did not Government officials had taken an active part. deny any of this, so I continued that whilst the Canton Govern- ment were supporting this economic war on a friendly nation, in disregard of all international usage, it was not for them to com- plain when the Governor of Hongkong at last gave public expres-
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sion to a truth of which everyone, both Chinese and foreign, had long been convinced. As regards the extension of the boycott to the Yangtze, I said I had no doubt that the red elements with Russian backing, who were responsible for the continued attack on the British in Kuang-tung would do their best to make trouble for us wherever the Nationalist party gained control, but there was this he would do well to remember and impress on his extremist friends. Whilst the boycott was confined to Canton and Swatow and our trade in the rest of China was doing as well as could be expected under civil war conditions, His Majesty's Government, occupied as they are with more important questions elsewhere, might be prepared to leave things alone for fear of extending the trouble, irritating though such a policy may be for But if the the British subjects who are the actual sufferers. greater part of our trade in China was to be menaced, the British Government might be forced in time to take more active steps for its protection. We were a nation dependent on our overseas trade, and we were not likely to see an important market disappear without a struggle. I told him that these things moved slowly, and that the Cantonese had so far been left alone because of their insignificance, but once let them become a serious danger and the political wheels would begin to turn.
There were more ways
than armed intervention for dealing with such a situation. Under- standings with other Powers were possible, or even with the Canton Government's enemies in China, whom they had by no means overcome yet.
On the other hand, I said, if the Nationalist Government had a programme for the unification of China and the restoration of order, which would appeal to unprejudiced and liberal minded people, why not give the British a chance of considering it sym- pathetically, and seek our support instead of our enmity. The other political parties in China, I said, depended on the prestige of individual military leaders, and gave no promise of perman-
ence.
If, therefore, the Nationalists ceased their attacks on foreign Powers and spent their energies on the improvement of the local administration, in which direction they had already made some limited progress, it might well be that foreign public opinion would turn to them as the only hope for the future of China.
I said I thought he had asked me to meet him in order to listen to some suggestion for the resumption of the boycott negotia- tions on the lines he had previously mentioned. Had he no pro- posal of that sort to make?
He replied that he had discussed the matter with his colleagues, but although he himself would like to do something of the sort, he had met with no encouragement. The leaders of his party had said that the "dynamic section of the Canton public were determined to continue the struggle until they had obtained their terms, and the Government could not force any other settlement