CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 174

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sources. He also summarised the state of

the forces now at Shanghai, and the arrangements

already made for reinforcement.

In the course of the discussion the

Chancellor of the Duchy of Landaster, as Chairman

of the Trading and Plockade Sub-Committee of the

Committee of Imperial Defence, read o summary of

the results of the enquiries nt two meetings which

had already been held. In regard to the question of

whether effective pressure could be put on the

Cantonese at Hankow by maintaining the closure of

the British banks, the conclusion was that this

pressure, though to some extent effective at first,

would diminish with the passage of time and could

not be relied on 28 a permanent means of affecting

Cantonese policy. The situation as regards a

general blockade of China appeared at first sight

to be favourable.

The foreign trade of South

China could be stopped, but sooner or later trade

would find its way down through northern ports unless

these were also blockaded, but the injury to our own

nationals and to the Chinese elements most friendly

to us had to be taken into consideration. The

Committee were of opinion that little good would

result from what is called a "pacific blockade".

The President of the Board of Trade made

a statement in regard to the provision of shipping

transport for any force that might be sent.