CO129-494 - Governor Sir Clementi - 1926 [9-10] — Page 134

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as cordial as in the days of the Anglo-Japanese alliance, if only His Majesty's Goverment in concert with the Government of the United States of America would agree to the recognition of south- ern Manchuria as a Japanese sphere of influence for the development of which (subject to the maintenance of the "open door") we were prepared to give Japan a free hand." If Great Britain, Japan and the United States of America were united in their Chinese policy, this would go far to remove the troubles from which all three nations now suffer in China. Such a policy would, as appears from the 64th paragraph of Sir C. Eliot's despatch, conform to two principles which, according to Baron Shidehara, the Japanese cabinet considered of great moment, the one being "to

stabilize the condition of China" and the other hot

to break up the union of the Powers; while in the

54th paragraph of Sir C. Eliot's despatch I see that,

in connection with the question of extra-territoriality, it was suggested by the Japanese Government itself *that His Majesty's Government, the United States Government and the Japanese Bovernment should act together, if it was found impossible to arrange for concerted action by all the Powers."

8.

I attach a copy of despatch No. 49 of the 16th April from His Majesty's Consul-General at Hankow to His Majesty's Minister at Peking, as the Foreign Office does not appear to possess it.

9.

It is interesting to observe that quite recently a number of the Japanese consular represen- tatives in China, including those in Canton and Hong Kong,have proceeded simultaneously on leave to Japan;

and