CO129-501-5 Chinese situation- Recognition of Canton Government 22-7-1927 - 28-9-1927 — Page 11

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PARAPHRASE TELEGRAM from the Secretary of State for the Colonies to

the Governor of Hong Hong.

Sent 12.40 p.m. 28th September, 1927.

H.B..

27

I was on the point of sending to you the following telegram when the

recent crisis at Canton supervened begins. I fully sympathise with the

at once view in your Secret despatch 22nd July that everything possible should

be done to reach honourable settlement with Canton Government but I

you

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can give no encouragement if such a settlement would involve

A

recognition.

The Canton Government is already recognised as the

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de facto provincial Government of Kwangtung and it could not possibly

be granted recognition as an independent Government unless it asked

for it; it declared its independence of the rest of China; His

Majesty's Government were satisfied of its stability; and the other

Treaty Powers had been consulted in the matter. In present circumstances

there can be no prospect of His Majesty's Government being able to

entertain the proposal, for even if the first two conditions were

fulfilled, which is not at present the case, some considerable time

must obviously elapse before the third could be satisfied and I see no

reason on the other hand why you should not work towards a settlement while keeping clear of the recognition issue. I take it that the

questions which you would wish to be included in such a settlement are those enumerated at end of memorandum enclosed in your despatch. these extradition is being dealt with separately. River conservancy could be discussed and settled as opportunity arises.

Boxer

of

Indemnity funds cannot be utilised for the loop line but any other proposals for financing the project which would be acceptable to both Governments would be considered sympathetically. The bonded warehouses scheme might be discussed in any tariff negotiations which may arise out of proposals now under consideration.

On the remaining

question