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سائلس

PUBLIC RECORD OFFICE

Reference :-

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PUBLIC RECORD OFFICE, LONDON

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

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stuffs was a measure dictated by common prudence for the pur- By the pose of conserving the food supplies of the Colony. 22nd June the shipping strike had already begun, and no one knew how far the importation of food-stuffs into the Colony might not be interfered with. If this was a blockade by Hong- kong it was a blockade of the whole world. The object of the prohibition was shown by the notification of the 11th August, which announced that licences would be given freely for the exportation to all destinations subject to adequate reserves being maintained in the Colony, and the embargo was wholly removed on the 9th October. The prohibition of the exportation of coin, bullion and notes was a measure of ordinary financial prudence for the protection of the currency and financial system of the Colony. Thus, purely defensive measures, imposed on Hong- kong by the strike, are twisted into an attack on Canton. fact, the statement of the Chinese delegation on this point seems to us to be a desperate attempt to find an excuse and an explana- tion for the institution and maintenance of the boycott against Hongkong, a community which had not been concerned in any way with the incidents previously described.

In

Finally, we take this opportunity to enter an indignant protest against the attempt, which has been made by means of unscru- pulous propaganda throughout the course of this unhappy trouble, to throw the blame on Hongkong and on the British nation. In truth, the malady of which the Chinese delegation speak is an internal one, and will not be cured by attacking the British people who, of all others, are most desirous of seeing a happy, pros- perous and independent China with whom they can conduct their trade.

We fully appreciate the fact that the whole outlook of large and sections of the Chinese people has changed in recent years, we sincerely sympathise with the ambition of the Chinese nation' to take that great place in the world to which its genius entitles it. The Government of Hongkong, in particular, is prepared to assist in the development of those provinces with which the Colony is brought into immediate contact, in any way which may be of mutual benefit, and it is in this direction that we hope a solution of the present difficulties may be found.

ENCLOSURE 4 IN NO. 28.

[TELEGRAM.]

From the Hon. Mr. J. H. Kemp to the Governor, Hongkong. (Dated 22nd July, 1926.)

Chinese delegation, Wednesday, proposed two alternatives: -

1. International judicial enquiry into Shakee incident.

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2. Compensation to strikers and relatives of killed at Shakce. We definitely reject compensation to strikers. We objected that enquiry so late would be very difficult, concurrence of other Powers would be necessary, and enquiry might take a year. Doubtful if boycott would be lifted pending result of enquiry. We urged settlement of boycott now and postponement of ques- tion of enquiry and mutual claims. Possible object of Canton is delay awaiting expected developments in central and north China favourable to them. Please take no action, and do not telegraph London until further communication from us. Next meeting to-day or to-morrow. Unnumbered telegram of 22nd.

C 16912/26.

J

No 29.

KEMP.

The Governor of Hongkong to the Secretary of State for the

Secret.

SIR,

Colonies.

(Received 2nd September, 1926.)

Government House, Hongkong, 28th July, 1926.

I have the honour to forward for your information copies of a Sessional Paper* containing the documents published in connec- tion with the recent Boycott Conference at Canton. I enclose also copies of a report of the discussions which took place at the meetings of the Conference on the 21st and 23rd July. This report will not be published.

2. The proceedings of the Conference were most disappointing because the Canton delegation appears to have regarded the meet- ings as a good occasion for indulging in propaganda rather than as an opportunity for settling the boycott. Allowance must, of course, be made for the fact that Mr. Eugene Ch'ên is by pro- fession a journalist, and that Mr. Ku Mang-yü is Director of the Propaganda Bureau at Canton. But, even so, the deliberate re- suscitations by the Canton delegation of the unfortunate Shakee- Shameen episode of the 23rd June, 1925, and the demand for an international commission of enquiry to settle the responsibility for that episode, as a preliminary to discussing terms for settle- ment of the boycott, do not encourage the hope that the Canton

• Not reprinted.

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Government is genuinely desirous of re-establishing friendly relations with the British Government. Nevertheless, Mr. Kemp and Mr. Halifax carried away from the Conference a distinct impression that the Canton delegates and the Canton Govern- ment were really anxious to be rid of the anti-British boycott.

3. The Conference adjourned sine die on the 23rd July, in order that the Canton delegation might consult its Government on the British proposal of a development loan, and that the British dele- gates might consult their Government on the Canton proposal of an international commission of enquiry into the Shakec-Shameen shooting affray of the 23rd June, 1925.

4. It is interesting and important to trace the evolution of the demand made by the Canton delegation for a commission of enquiry, In the statement read by Mr. Eugene Ch'ên at the meeting of the Conference on the 16th July, there is the following passage: "The question as to which side fired the first shot is not a capital issue in view of the actual circumstances of the case All the relevant facts and the grim results of the shooting.. of the case support the view that, even if the Shameen firing were done in the first instance in so-called self-defence (which is cate- gorically denied), it was excessive and, therefore, legally unjusti- fied." The British delegation replied on the 19th July:-" We consider that the question of whose act gave rise to the tragedy is of vital importance, and on this point we must insist that not only the evidence of British and French witnesses attest the fact that the shooting began on the Chinese side, but there are also on record written statements by the Danish and Swedish Consuls and American citizens, who were present at the time and assert definitely of their own knowledge that the first shots were fired from Shakee." Thereupon the Canton delegation rejoined on the 21st July:- "We have categorically to state that the firing This on 23rd June was first opened from the Shameen side. point, of course, is of vital importance. And, in view of its pre- sentation by the British delegation, it now appears necessary for the Conference to consider whether the question of responsibility for the Shameen-Shakee shooting should not form the subject of a properly-constituted international enquiry."

5. Here, then, is the origin of this proposal by the Canton dele- gation for an international enquiry. Put quite frankly the argu ment is this. The Canton delegates said: "We shall never agree as to who fired the first shot; but will you not agree that firing was kept up too long from Shameen, and upon that ground pay us compensation?" The British delegation replied: "No. There is no doubt that the first shots came from Shakee, and that the whole incident was provoked by a Chinese procession along Shakee, of the danger of which you were forewarned, and which you should not have allowed." The Canton delegates then said: We must have free money. We therefore make three suggestions:-

(a) Pay us free money now and we will call off the boycott:

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(b) Make us a deposit of free money now, and we will call off the boycott, arrange for an international commission of enquiry and repay the deposit if the decision of the com- mission is in your favour: or

(c) Let the boycott continue and arrange for an inter- national commission of enquiry which shall also settle the terms upon which the boycott should be called off."

Our delegates then answered in effect:-"We will not give you free money: but we will refer to our Government your proposal of an enquiry."

6. The first point to note is that this proposal of an enquiry is quite new, and appears to have arisen almost fortuitously as a by-product of the Conference. No demand for an enquiry was made in Canton thirteen months ago at the time of the Shakee- Shameen episode. No such suggestion was ever made in the conversations which I had in Hongkong with Mr. Sung Tsz-man and Mr. Sun Fo, which Mr. Fletcher, and later Mr. Kemp, had with Mr. C. C. Wu and other Chinese officials at Canton, which Sir Shou-son Chow and Dr. Kotewall had with Mr. Fu Peng- sheung at Macao, or in the interviews between Mr. Brenan and No such Mr. Eugene Ch'ên himself prior to the Conference. proposal has been put forward heretofore in the Canton news- papers, and it is quite certain that this demand is not the result of popular sentiment in Kuang-tung. I believe it to be a face-saving formula newly devised by Mr. Eugene Ch'ên and thought of by him since the Conference began. It is not, of course, a serious contribution towards a solution of the boycott problem, but it is an effort to impale us on the horns of a dilemma, acceptance and refusal of the proposed enquiry being alike difficult and perhaps dangerous.

7. The objections to acceptance are obvious.

(a) A solution of the boycott problem would be indefinitely postponed, for the Canton delegates made it quite clear that the boycott would not be removed until the enquiry was over. (b) The consent of France and of one nation not involved in the dispute must first be obtained in order to constitute the proposed commission of enquiry; and other Powers would have to agree to evidence being given by their consuls and nationals. The Canton delegates, no doubt at the instance of their Bolshevik advisers whose policy is to deal with the European Powers in China piecemeal, concentrating the first attack upon Great Britain alone, made an effort to exclude France from the proposed enquiry. But, in view of the cir- cumstances of the Shakee-Shameen episode, it is clear that French participation in such an enquiry is necessary. This is certainly the view of Monsieur de la Prade, the French Consul at Hongkong, who was formerly French Consul at Canton and who has had long experience in China. I dis- cussed the matter with him, and I find that he is convinced

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