CO129-420 - Governor Sir May - 1915 [1-2] — Page 293

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.SE.ol.

present conditions. In the circumstances I should be glad if you would communicate with the Governor of Hongkong with a view to the situation being explained to the Green Island Cement Company.

I think that it is possible that if the Company is brought fully to realise not only the difficulty of holding the present Chinese Government responsible for the action of Revolutionary Authorities over whom they were not in a position to exercise con- trol, but the hopelessness of pressing & heavy pecuniary claim of doubtful validity from the point of view of international law on a Government which is practically insolvent, they may be willing in view of the unrestricted resumption of shipments to waive their claim for pecuniary compensation for their losses consequent upon the interdiction of export and to accept instead some grant of further facilities, temporary exemption from taxation or other advantages if the Provincial Authorities can be induced to arrive at a settle- ment on such lines.

I should be glad therefore if, before presenting the claim again to the Provincial Authorities, you could inform me whether you consider that it would be possible to persuade the Company to modify their attitude in the sense indicated above and whether my suggest- ion appears to you to offer a practical basis for a settlement. I should of course be prepared to take the necessary steps here to ensure that pressure be brought to bear by the Central Government on the Provincial Authorities to accord the special advantages and

to accept facilities which the Company would agree in lieu of a pecuniary settlement of their claim.

A

I am,

etc.

Sd.

J. M. Jordan