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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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Finally, it would be a friendly gesture to moderate Cantonese if the Boxer Indemnity Delegation were to visit Canton. Should they do so? And should they go soon? Such a visit might tend a non contentious to show whether or not co-operation on matter is possible. Canton is entitled to benefit from Boxer Funds.

Should an annual grant be given to Canton, as is loudly advo- cated, for port and municipal improvements, &c.? This might offset subsidies from Russia as well as serving as a subsidy for good behaviour.

These questions are admittedly hard to answer, and, before you reply, you will probably wish to ascertain the views of Sir James Jamieson and to await the arrival of Mr. O'Malley, who could give you an account of his conversations at Hongkong with the Parliament, however, meets on former and the Governor. February 2nd, and the matter is urgent. Criticism of our apparent inaction and inability to handle this problem is becoming more and more insistent, both in influential business circles and in the Press, and we expect to be pressed.

Please repeat to H.M. Consul-General, Canton, with instruc- tions to consult with Hongkong and forward his observations to you.-MACLEAY.

ENCLOSURE 2 IN No. 7.

[TELEGRAM.]

From Peking No. 9 to H.M. Consul-General, Canton. (Despatched 31st January, 1926, 4.50 p.m.)

l'araphrase.

(Received same date, 10.15 p.m.)

A very long telegram has just been received from the Foreign Office about the Canton situation, and is being repeated to you. Foreign Office desire an expression of our views thereon by the morning of February 2nd.

It would appear that, when this telegram was drafted, my It is, of telegram No. 39* had not reached the Foreign Office. course, out of the question for you, the Governor of Hongkong and myself to give jointly considered views at such short notice, It would therefore be or even for any two of us to do so. advisable for you to reply direct to the Foreign Office immediately.

I feel that I can add little or nothing to the conclusions arrived at in the third paragraph of my telegram No. 39 (my telegram No. 7 to you), but I shall not fail to repeat my reply to you as soon as it is prepared.--MACLEAY.

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ENCLOSURE 3 IN No. 7.

[TELEGRAM.]

From Peking No. 10 to H.M. Consul-General, Canton.

(Despatched 1st February, 1926.)

Paraphrase.

(Received 2nd February, 11 a.m.)

Repeated to

Addressed to Foreign Office, telegram No. 42. Canton, telegram No. 10. Please forward to Hongkong.

Reference your telegram No. 35.*

My telegram No. 39† will, I think, have pointed out the serious objections and dangers to the employment of force at present in the manner contemplated in paragraphs 1 and 2 (b) of your tele gram. Even if it could be maintained that the strike, boycott and refusal to trade constituted infringement either of the Washing- ton or of any other Treaty, it would be very doubtful whether any Power not directly concerned would regard us as justified in look- ing upon such a high-handed and unfriendly attitude on the part of Canton towards Hongkong and British trade as a casus belli. The attitude of the Japanese Government towards previous boycotts has been so supine that I doubt whether, even in the event of the boycott of Japan (mentioned in Sir James Jamieson's telegram No. 34) materialising, they would be prepared to join us in employing force. It is probable that France, having nothing to lose, would be more ready to co-operate than any other country. If, however, it should be thought advisable to learn the views of the Powers, either as to our taking isolated action or as to their willingness to co-operate, it would be essential for the inquiries to be made either in London or in the respective capitals, since there is not one of my colleagues in Peking who would take the responsibility for expressing any definite opinion or of placing concrete proposals before his Government.

It would be hard to say what genuine grievances the Cantonese have. Declarations by C. C. Wu and the son of Sun Yat-Sen, recent reports regarding negotiations, and the general attitude of the dominant Red faction would certainly lead one to believe that they are nlled with a bitter hatred of Great Britain, and that they hope, by taking advantage of the alleged economic griev- ances of the strikers, to compel the Hongkong Government to come to terms with the strikers at an early date and to submit The Bol- to further impossible and humiliating concessions. sheviks openly direct and encourage this faction, and so long as it remains predominant, I have little hope that any attempts at conciliation will meet with success. We have, incidentally, no right or power alone to offer to the Canton Government control over local Customs revenues, but I feel that neither this nor a generous allocation of Boxer Indemnity Funds for education or

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• Enclosure 1.