CO129-500-1 Canton situation- governor's despatches 18-5-1927 - 9-6-1927 — Page 152

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credit to this news but it is a fact nevertheless. The

reason is that the Government has shown itself ready to make

certain concessions, and the Japanese taking the tide at the

flood have also hinted that they are ready to make some

concessions.

One day the Japanese Consul-General called on Eugene Chen,

and the latter discussed the question with him in the presence

of Chan Kung Pok, Head of the Labour Department of the Central

Kuomintang. The Japanese vice Consul-General, Tanaka Masaichi,

expressed his eagerness to have a decision reached. As the

result it was agreed that discussion of the incident of 3rd

April should be postponed meanwhile, and that the following

terms should be first put into execution.

(1) Both sides should withdraw their troops and Japan should

entirely her military preparations.

(2) Japanese merchants should resume business and Chinese

workmen their work.

(3) The Foreign Office of the Hankow Government should guaran-

•

tea that the Government will in future be responsible for

the proper protection of the lives and property of the

Japanese.

(4) Chinese workmen should in no way show any active hostility

to any Japanese subjects or merchants or cherish any

grudge against them.

The Japanese Consul-General was satisfied with this. After

this discussion, Cheung Leung, Secretary of the Foreign Office,

Shit Sau, Secretary of the Labour Department, and Hu Pak Ho, Representative of the General Labour Union, were appointed as

Chinese Representatives, and Tanaka Masaichi, the Japanese Vice Consul-General, Goto Fugami(?), Takano Myoho and Tsuchii Kome(?)

of the Commercial Chamber as representatives of Japan.

Negotiations were then entered into, and the above conditions

were