CO129-493 - Governor Sir Clementi - 1926 [6-8] — Page 359

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h

desire

restore friendly relations. We would like to

cut away the ground from beneath these who say that Hong Kang357

desires t. strangle Canton.

MR. CHEN: This then is the counter proposal?

End

▸

MR. BRENAN: An unwarrantable attack has been made on us perhaps it is our proper duty to say "we have nothing to negotiate about". We realise, however, Canton has its difficulties and that the Government must be able to say to the people, "We have got something for you: We have been able to preserve our prestige and forward your prosperity". Suggest an object for a loan yourselves. There are other objects which we would have preferred, for example, the Bias Bay railway, or the Shok-lung Chiu Chau railway. We have put forward the Whampoa proposal as evidence of our genuine desire for a friendly agreement.

MR. CHEN: The difficulty we have to face is this that the Nationalist Government must shoulder a financial burden by closing the boycott in practice. It is vasy for us to destroy the boycott and end the whole thing, but that is no solution of the difficultics. The use of blind for cu

might only end in driving the trouble under ground. We

want to reach a settlement in circumstances which will

make the settlement a real thing. The question is a surious

practical one for us.

MR. BRENAN: The paymnt of compensation is regarded by the

British side as a payment of blackmail and there is a fixed

determination not to pay. Hong Kong accepts no blame for the

troubles. Your burden is your own and you have revenue from

which you should muct it. You have raised the problem and

you should solve it,

MR.

CHEN:

This is a serious practical question and ignoring

the matter of its rigin we want t. know what a.lution can be

found.

Clearly it involves a financial burden. Both sides

: