SECRET
NO DISTRIBUTION.
(F 4498/93/10)
To CHINA.
Cypher telegram to His Majesty's Consul General
(Shanghai)
Foreign Office, 23rd May 1927, 3.15 p.m.
No. 57.
XXXXXX XX
Following for Sir M. Lampson: -
My telegram No. 56 (in reply to Peking telegram No. 830 of May 6th. Boxer Indemnity).
For your own private information I should explain that circunstances in China and Parliamentary pressure may compel us to modify our policy regarding the Indemnity, and I should be glad to have your observa- tions on this question, Do you think the time has come or is approaching when we should adopt one dic- tated by the necessity of making satisfaction of British claims a charge on these funds?
The following strong objections to any such
immediate change of policy occur to me:
(1) It would be the revocation of a definite and
unconditional promise, and lead to a charge of bad
faith.
(2) It would mean paying compensation for damage done by a relatively small faction in the middle
of civil war out of funds promised in entirety to
China as a whole,
(3) It would relieve China of obligation to meet
these claims by direct payment,
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