CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 118

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events should prefor the Russians. The only counter- offor which it occursto us that the North might make is possibly the control of local Customs revenues, for which Canton has been clamouring ever since 1918.

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

Should an annual grant be given to Canton. as is loly advocated, for port and municipal improve- ments, etc.? This might offset subsidies from Russia 22 well as serving as a subsidy for good behaviour.

These questions are admittedly hard to inswor, and, before you reply, you will probably wish to ascertain the views of Sir James Jamieson and to avai the arrival of Mr. O'Malley who could give you an account of his conversations at Hongkong with the former and the Governor, Parliament, however, meets on 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 instructions to consult with Hongkong and forward his observations to you..

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MACLEAY.