CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 177

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Decypher of a telegram from the Sovemor of Hong Kong to the Secretary of State for the Colonies.

Dated 20th December, 1926. (Received, Colonial Office, 9.5 a.m., 20th

December, 1926.

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«MALIST 03 Junqui

Foreign Office telegram No. 31 of 2nd December to Shanghai was received by me en 19th December .

1. I am most heartily in favour of this attempt to unite Powers in support of common policy in China but if the Powers do not negotiate on treaty revision, ete., until "Chinese themselves have constituted a Government", s** paragraph é of Foreign Office telegram, events will for an indefinite period pursue their present destructive course. If, however, it is the policy of the Powers "to endeavour to maintain harmonious relations with China without waiting for the prior establishment of strong government" see and of paragraph 7, then in view of the present disintegration of China explicitly admitted in the Foreign Office telegram regional recognition should be expedited for the sakh of this Colony and of British interests in China generally. Such recognition is also, I believe, the only way to saTO the laritime Customs.

2. As regards the proposal to grant Washington sur- taxes unconditionally at once, I feel very strongly (a) That this would be direct subvention of civil war all over China, would prolong the present misery and would not be used for the abolition of Likin or for any beneficial purposes contemplated at Washington, (b) That sa forty three per cent of the Customs revenue is collected in Shanghai, see O'Malley's telegram No. 95 of the 14th December, this proposal, however acceptable to Sun Chunn Fang, would infuriate Canton whose resentment might react

unfavourably

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