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(2)
No.23 and is all the stronger if charge is for un-
secured debts end not likin.
453
(c) We have no wish to see Central Government
at Peking disappear or formelly to recognise provincial
independence, We think however that only sound
arrangement is that Central Government should exist
by voluntary consent of provinces rather than rest on
outside support. Might not withdrawal of support promote thief Our point is admirably stated about the middle of paragraph 5 of your Conference telegram No.31.
(d) We regerd Canton as a good illustration of the evils inherent in present régime (1) because the boycott is ruining Hongkong and our shipping trade, (2) because it seems to foreshadow what may easily
happen elsewhere.
We are not convinced that Canton is merely Bolshevik and therefore alien to the rest of China and not Emonable to the same treatment, Though boycott is prompted by Bolsheviks does dos root not lie rather in past refusal to allot dus share of customs to Canton? Would not concession in matter of custans revenue8 tend to promote settlement by strengthening hand of Right or even Left Kuomintang who are unessy under Soviet domiration? And if Conference persisto in present course is there not real danger of ultimato scizure of custome revenues or establishment of rival local custom house at Canton and reproduction of Canton situation elsewhere? Present policy of Conference recms to us to be direct descendant of policy of inter-
fercacs
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