CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 122

indicate that ample international forces for the

136

maintenance of order are at or within easy reach of

Shanghai.

(3) Eugene Chen on February lat at the last ncment

refused to sign the agreement which had been reached

in regard to the British settlements at Hankow and

Kiukiang unless we refrained from landing our forces

at Shanghai. But he has not carried out his vague

promise to give Mr. O'Malley in writing an assurance

that the Nationalist Government would not countenance

an alteration in the status of the British Concession

and international settlements except by negotiation.

There was evidence also that Chen's reasons were a

pretext, as he had known of our intention to send

troops to Shanghai since the beginning of the negotia-

tions, and had admitted that he had found points in the

agreements which needed revision (Mr. O'Malley's

telegramsfrom Hankow Nos.32 of January 31st, 35 and

36 of February 1st.).

(4) Chen may have been encouraged to seize upon the

troop movementa as an excuse for not signing by the

published resolution of the Joint Labour Council and

speeches by certain Labour leaders. There was evidence

that British public opinion, while supporting the

action taken by the Goverment to protect British

lives in China, was very anxious for a friendly

settlement.

(5) Sir Miles Lampson's telegram indicated that the

outward opposition of Northern China to the advent

of British troops at Shanghai need probably not be

taken too seriously (Peking Telegram No.234 of

February 4th). But the Japanese Goverment would prefer that British troops should not be landed at Shanghai

and were anxious as to the possible results in

stirring up anti-foreign sentiments in China, where

there