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4.
As you are aware, the Conference at Canton has been adjourned pending a reply from the Canton Government
418
on the British loan proposal, and a reply from His Majesty's Government on the Cantonese enquiry proposal.
There appears
to be no good reason in existing circumstances why His Majesty's Government should present its reply before the Canton reply is received. On the contrary, it will be an advantage to us to know what is the nature of the Canton reply to the loan proposal before framing our own reply to the enquiry proposal
for
it is possible that the Canton reply might be such as to obviate the necessity of our making any reply at all. The Executive Council, therefore, unanimously recommends that our reply to the enquiry proposal should be delayed for two or three weeks, by which time the result of the military operations now in progress should be known.
5.
We have carefully weighed the obervations of His Majesty's Government, conveyed to me in your telegram of the 4th August that delay is more likely than not in the end to commit us to accept an enquiry, since we could hardly refuse after some months' interval on grounds which would have been obvious at the outset; and further that, if the enquiry is to be accepted in principle, it would clearly be better tactics to accept at once without reluctance rather then after any appreciable delay. But we consider that this objection does not apply to a delay of weeks only, not of months: and also that there is no obligation on us to be
more speedy than Canton in our reply.
6.
If, meanwhile, the Canton Government should reply to our loan proposal and a prompt reply from us to the enquiry
proposal seems called for, then we agree that our answer should be on the lines indicated in your telegram of the
4th August; but we suggest for your consideration two further stipulations, namely:-
:
(a)
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