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We intend that removal of boycott should be cmdition precedent to any inquiry. If Cantonese object it would be open to us to point out that while the anti-British boycott remains the atmosphere would be such as to preclude all possibility of conducting satisfactory enquiry, in short that existence of what is virtually a state of disguised warfare is inconsistent with the friendly co-operation demanded by enquiry. If our conditions are refused we should then be in a position to refuse enquiry without odium and the ground would then be left clear for settlement by other means such as loan proposals.
It seems likely that enquiry has been proposed both to save face and to gain time in view of Hunan situation, and there appears good reason to believe that the Canton Government are not sincere in their demand. Even however if they were to accept our conditions for enquiry the harm arising out of an enquiry of limited scope would not be likely to counterbalance the definite gain resulting from removal of the boycott.
I should be glad to receive your views by telegraph as soon as possible. At the moment we desire only your observations and no action should be taken until you receive authority from me. Foreign Office are telegraphing to Canton and Peking in the same sense.
ALLERY
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