CO129-496 - Public Offices - 1926 — Page 45

(2).

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powers signatory to Washington treaties.

Moreover effect of such a note would be much diminished if Sir James Jamieson's recall were to follow

immediately after its presentation and, on supposition

that hope is still entertained that a more moderate

element may emerge at Canton with whom it may be possible to reach settlement by negotiation, the

presentation of such a note would seriously embarrass the new Acting Consul General and if it was left to him

to address it to local government would surely prove

very inauspicious beginning for his mission.

All things considered therefore, I would venture

to recommend that question of presentation of note

should be left over until Mr. Brenan reaches Canton

and is able to judge how situation is developing. He

should, I think, be instructed to keep the note of

proposal about offering a loan for railway construction

and visit of the Willingdon committee in reserve to

be used if and when expedient.

In the meantime events are moving fast in

northern China with collapse of Kuo Min Chun forces

and growth of a strong anti-Bolshevik feeling which

appears to be having a repercussion in Centon, It

seems therefore all the more desirable that we should

proceed very cautiously as our policy towards the

Cantonese government in question of demand for com--

pensation, railway loans, etc., must be largely

governed by future relations between that goverment

end new Central government which will be established

in Peking as a result of the present hostilities,

Addressed to Foreign Office No. 129, repeated

to Hong Kong.