(This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.
CHINA.
450
Decypher.
Sir R. Macleay, (Peking).
D.
R.
5th January 1926.
5.35 p.. 5th January 1926.
3.30 p.m. 5th January 1926.
10. 2.
Your telegrams Nos. 381 and 382.
Change of policy which you appear to contemplate
in regard to control and distribution of customs
revenues and treatment of unsecured debts and your suggestion that we should practically cease to regard Peking as the political capital of China, appear to me to be based on a misconception of the actual conditions and on erroneous assumptions in regard to attitude of provinces, various factions and military leaders to- wards these questions.
(1) While it is true that present Central goverN- ment is a mere shadow with practically no effective authority or constitutional status, Poking is still considered and treated by all component parts of the Kepublic including opponente of present goverment (with the exception of Red faction in control of Canton) as the seat of government and diplomatic capital of China, where her foreign relations are and
It is significant must necessarily be conducted.
that while independent or semi-independent military leaders may and do appropriate state revenues and otherwise defy authority of Central goverment,
they
have .***
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