CO129-501-2 Chinese situation- Boxer indemnity 5-2-1927 - 14-12-1927 — Page 78

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Decode.

Sir M. Lampson, (Shanghai),

June 2nd, 1927.

D.

5.35 p.m. June 2nd, 1927.

R.

1.25 p.m. June 2nd, 1927.

No. 50.

78

(R).

Begins:-

Your telegram No. 57.

If I may I should prefer to refrain from expressing final opinion for the time being.

Possibility of using Boxer funds for the purpose of indemnifying British claims has long been in my mind; but it is difficult at the

moment to say on which side of balance advantage

lies. I feel we should be well advised to wait a little and see (1) how the situation develops

here, 1.e. how far we can get the Chinese to a

reasonable frame of mind at the moment the

prospect is not encouraging, and (2) how public opinion crystalises at home both inside and cut-

side Parliament.

Prima facie I feel there is great force in objection number 3. on your list. On the other hand it seems all wrong to return this very large sum of money to China at the very time when legitimate British trade and private property are being deliberately destroyed, in most cases with official support or connivance.

I have been unable to see Tsai so far but I

have seen a friend of his whom I have known for

many years who assures me that Tsal is strongly dis- inclined to take the matter up as things are at

present