CO129-501-5 Chinese situation- Recognition of Canton Government 22-7-1927 - 28-9-1927 — Page 47

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China concerned. Among these we would refer to

the necessity for finding employment for the surplus

millions now living on the verge of starvation and

providing a fruitful soil for Bolshevism. Commer-

cial development and new industries are urgently

required and for these a stable currency, improved

transport, river conservancy, telegraphs, telephones

and the honest collection and administration of

revenue, and the honest administration of justice

are essential.

Turning now to matters connected with treaty

revision which specially concern Hong Kong, we would

emphasize the importance to Hong Kong of the Kuang-tung

and Kuang-hsi provinces and particularly of Canton.

The trade of these provinces is vital to Hong Kong

and it is essential that Hong Kong should be able to come to an honourable settlement with a recognized

de facto overnment in Canton. Such a settlement

we believe to be very far from impossible, if the

interests of the vast area of South China served by

Canton and Hong Kong could be differentiated in

policy, as they are in fact, from the even vaster

interests of the centre and North, from which they

are entirely distinct.

Granted then a government in Canton with which treaty revision can be negotiated, we would urge His Majesty's Government to give earnest attention to certain matters which are of vital importance to the

well

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