CO129-493 - Governor Sir Clementi - 1926 [6-8] — Page 360

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clearly wish to see an end of the boycott, This conference is not a conference of conflict or of victory of one side

r of the other. What we want is peace..nd c possibility of return to normal conditions of commercial and social life.

If is of no use merely t. write un piece of paper the boycott

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is ended. You refer to a payment of blackmail: is not your- own "face" 180 concerned?

MR. KEMP: We fully realise that you have

2 difficulty and a

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burden which is not a light one. But they are your own und ve

cannot assume any part of that burden.

MR. CHEN: The solution of the difficulty involves a heavy financial burdon and if Hong Kong wishes t: solve the difficulty

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they should share that burden. As we stand at the moment, we have no financial burden too heavy for us to be..r. If the boycott is to bu, settled and normal relations are to be resumed then a burden will be involved of which the Nationalist Government cannot carry the whole.

MR. SOONG: It is agreed that the removal of the boycott will involve the payment of money. The Nationalist G.vernment cannot pay and the Hong Kong Government will not; therefore, here we reach a deadlock. We have suggested another solution, an International Enquiry, which does not promise an early settlement May I suggest a third possible solution which is that while Canton-pays the money necessary for a settlement Hong Kong lends it to C..nt.n; whether the loan should be repaid or not should dupend on the result of the Enquiry. Our difficulty is that an immediate solution requires on iddiate payment

and we cannot pay.

MR.

BR.NAN: I must emphasis the impossibility of any payment

for strike compensation or on account of military expenses.

There

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