CO537-3707 — Page 139

6. In short, at its worst, 1.e. decision against

y

I think arbitration is batter than Consulate compound even though, whilst the 1800s was subjadies, Chinese would be very likely to endeavour to stir up publie feeling. But dee is this

(201) connection paragraph 1 of my telegram No.298 (No.6h to Nanking).

Pt. II.

And are we justified du asevming that decision is likely to go against 6?

7. I have shown this telegram to the British Ambassador who asked me to add that mile he would prefer speedy settlement on basis of Coneals to cooperand to a period of wwertainty during which Sino-British relations would be very uneasy, he fully appreciates strength of the experts bet forth above, In view of extreme weakness of the Chineas

(uvernæeat and growing doubt of their survival An ang but an increasingly shadowy Torn, be easidero that opinion of the. W. Goverment should prevail in thda nahtar. Fe okapna my view

that early deodaton hy H.M. Gorernent is deimble,

4. Correctior, being obtained.

Copy went bal

Foreign Office

Mr. 4.1. 800**.

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