CO129-496 - Public Offices - 1926 — Page 48

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(2).

powers signatory to Washington treaties.

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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 Generel 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. Brengen 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 Canton, 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 government

and 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.