CO129-496 - Public Offices - 1926 — Page 518

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The new policy which the Foreign Office propose

to adopt differs only from the policy that they have hitherto attempted to pursue in that it is now intended to take such independent action as we can if the other Powers still refuse to come into line. A month ago, when the Cantonese had only recently imposed their new taxes and before the "Inspection Corps" had become fimly established, independent action by us on the lines indicated might have had some chance of success, Matters have now, however, reached such a stage that we have little to gain by dissociating ourselves in this way from other Powers. There are three desiderata of any policy (1) it should conciliate with the Chinese. (2) it should unite the Powers.

(3) it should preserve the Maritime Customs

and remove the restrictions on British trade,

Examined in this light the policy now proposed is likely to achieve little to our advantage. It will split the Powers, it will not remove the

Knew "Inspection Corps" at Canton, but by recognising taxes will actually encourage restrictions on trade, and there is no prospect of it conciliating the Chinese to whom we can give no substantial benefits or concessions without the consent of the other Powers. All it is likely to do is to reveal our differences with Japan and America and to show publicly that we are on the Will this help us? On the contrary, we are

much

run.