side furnish guarantees of good behaviour and secure termination of boycott you on your side will be 50 prepared to recommend not only that claim for damages should be dropped but that assistance for municipal improvements (or some such vague and general purpose) should be granted from Hong Kong funds.
His Majesty's Government do not contemplate recognition of independence of Canton and it will be necessary therefore for any arrangement reached with Canton Government to be so adjusted as not to conflict with our obligations to Peking and other Powers. It is important that you should bear this in mind: in other respects the foregoing observations appear to agree on the whole with the policy outlined in your telegram of the 25th March.
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