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PUBLIC RECORD OFFICE

سلسا

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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Mr. Ch'ên: Then there is the alternative.

Mr. Brenan: Very well, we can proceed to your second pro- posal. I will refer the question of the enquiry to my Govern- How do you propose to constitute the commission of

ment.

enquiry?

Mr. Ch'ên: On that point we must consult our Government. Mr. Kemp: Would it be possible to stop the boycott now and leave the matter of the enquiry to stand over?

Mr. Ch'ên: The boycott arose immediately out of the Shakee incident. To settle the boycott we must settle the Shakee ques- tion first.

Mr. Kemp: But have you considered the time required for the enquiry? It may be a year. It will certainly be many months.

Mr. Chên: We, here, can agree on the constitution of the court of enquiry,

Mr. Brenan: Other nations will have to be consulted before that can be settled.

Mr. Ch'ên: We could, however, agree on the proposals as to how the Court should proceed.

Mr. Kemp: The other nations concerned must have time for consideration, and the witnesses are scattered all over the world.

for

Mr. Ch'ên: We could easily find out which witnesses are absent.

The troops, Mr. Kemp: Many of the witnesses are away. instance, may have been transferred.

Mr. Ch'ên: But we shall not require all the men.

Mr. Kemp: Who is to say? The Court might require addi- tional evidence at any stage, and it might take months to get it. The enquiry could easily take a year.

Mr. Ch'ên: Can we not find a formula beginning something on the line of "While we do not reject the proposal for an

.."? enquiry.

Mr. Kemp: It would be better to let the matter of the enquiry stand over with the claims for compensation on either side, and to proceed to settle at once the question of the boycott.

There is one term in the alternative proposal, which we can- Compensation to strikers is impossible. not possibly accept. Hongkong is the aggrieved party, and has suffered losses through We emphatically refuse to pay money to no fault of its own. strikers. No idea of such payment can be entertained, and we reject this condition here and now. We are emphatic on this point, as our determination is fixed.

Mr. Ch'ên: That, then, practically finishes our second proposal. Mr. Brenan: Yes, we emphatically reject the second proposal as far as it concerns the payment of compensation..

239

Mr. Chên: The Chinese delegation has now made two pro- posals: (a) the international enquiry which the British delegation wish to hold over without rejecting, and (b) an alternative pro- posal which is rejected. Can the British delegation on their side make any contribution towards a settlement?

Mr. Kemp: It is to the mutual interest of both parties to put an end to the boycott at the earliest possible moment. Trade will flourish at once, revenue will flow into the coffers of both Govern- It is a ments, and firmer relations will again be established. matter of importance that we should resume normal relations without delay. Stop the boycott and leave other differences for discussion later. We realise that the prosperity of Hongkong and the Liang-Kuang are bound up together. We would like to develop the province of Kuang-tung in some way which will be of mutual benefit. We would like to make a loan for this purpose in order to show the goodwill that we feel and always have felt for that Province.

Mr. Ch'ên: Will you please develop further the loan idea?

Mr. Kemp: It would take a considerable time to settle all the details. First of all we would have to agree on the objects of the This loan. The development of Whampoa has occurred to us. would be subject to our both being satisfied that a scheme sound from the engineering point of view is possible at a reasonable

cost.

Mr. Brenan: The loop-line would have to be built also.

Mr. Kemp: I was coming to that. We thought of a loan of about $10,000,000 for some project of mutual benefit. The development of Whampoa would involve the making of a railway to connect with Canton and the building of the loop-line. The development of Whampoa would not benefit Hongkong directly, but anything which increases the trade of Canton would benefit Hongkong indirectly. The loop-line would obviously be of mutual benefit. To have two railway systems in the same province unconnected would be unsound, and the loop-line would also be necessary for the development of Whampoa. Naturally a British Chief Engineer and a British Chief Accountant would be neces- sary, both to control the expenditure of the money as supplied and to see to the security of the revenue which would be required for the payment of interest and the repayment of capital. It is necessary on that point to refer to the Canton-Kowloon loan agreement, which has not been adhered to. Good faith is essen- tial, and one feels rather anxious about a new loan. The Whampoa works as constructed must be the security for the interest and capital of the loan.

Mr. Chên: That is, the port as developed would be the security. Is that your meaning?

Mr. Kemp: Yes.