CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 117

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excuse for continuing the boycott. I telegraphed to you in this sense on the 20th September.

10. On the 21st September a telegram from the Foreign Office (No. 270 to Peking) was repeated to me by Sir R. Macleay. It suggested that we should

test the sincerity of the Canton Government by wait-

ing to see whether they did in fact call off the

boycott by the date mentioned, and it added:- "Our

inclination is not to obstruct the new taxation

proposed with a view to calling off the boycott".

To this, after consulting Major-General Luard, Rear- Admiral Stirling and Messrs. Southorn, Kemp and Hallifax and with their full concurrence, I replied

by a telegram to you, dated the 22nd September, that

delay was very hazardous as the military situation

on the Yangtze and in Kiangsi might develop to the

advantage of Canton; that, unless we made a show

of force, the boycott was unlikely to end by the

date mentioned; but that, as naval reinforcements were

under way which would materially increase our strength

by the middle of October, further coercive action

might be deferred till then. As regards the taxa-

tion proposal we pointed out:

(a) that the letter of Comrade Ch'ên, dated the

18th September, did not expressly make the removal of the boycott conditional on our accepting the new taxes, and that it would be to our interest to keep these two matters separate:

(b) that the proposed taxation appeared to be an attempt by the Canton Soviet to abrogate "unequal treaties" without the consent of the Treaty Powers:

(c)

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