CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 121

ECRET

CABINET 7 (27)

Extract from Conclusions of a Meeting held at 10 Downing Street, Friday, 4th February, 1927, at 1130.a.m.

25 135

CHINA

(Previous Reference

Cabinet 6 (27) Conclusion 1.

5. The Cabinet had under consideration the

situation arising out of the approach to Hong Kong

of the transports conveying the first part of the

Indian mixed brigade destined for Shanghai.

The discussion on this question lasted from

11.30. a.m. to 1.30. p.m., and approximately from

3.45. until 5.45.p.m. During the discussion the

Prime Minister read a letter from the Chancellor of

the chequer setting forth his views.

The situation before the Cabinet was as follows:

The first transports have been ordered by the

Secretary of State for War, instead of proceeding

direct to Shanghai, to call for orders at Hong-Kong,

where they are due to arrive on Sunday, February 6th.

An urgent question arises, therefore, as to whether

they should proceed to Shanghai or not. On this

point the information before the Cabinet was as

follows:-

(1) From a purely military point of view there was no

evidence of imminent danger to Shanghai, whether from

an attack by the Cantonese forces, or from the arrival

there of a rabble of defeated soldiery. In this

respect the immediate danger appeared to be no greater

than when the decision was reached to send troops to

Shanghai, while the approach of the forces ordered

out for the defence of the settlement safeguarded the

future.

(2) From the point of view of internal security

against ob violence the particulars in Appendix II

(furnished to the Foreign Office by the General Staff)

indicate