CO129-496 - Public Offices - 1926 — Page 54

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side furnish guarentees of good behaviour and secure termination of boycott you on your side will be 53 prepared to recommend not only that claim for demares should be dropped but that assistance for municipal improvements (or some such vaque and general purpose) should be granted from long 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 annear to agree on the whole with the policy outlined in your telegram of the 25th Karch.

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