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After careful examination, the Cabinet agreed
General Policy
(a) That regard for the protection of British lives no less than the
disastrous effect which the surrender of Shanghai to violence
would have on the British position in China, Japan, India
and throughout the East, precluded the possibility of basing
any policy either on the evacuation, (even if that were possible),
or on the surrender of Shanghai.
(b) That Mr.O'Malley should be instructed to inform Mr.Eugene Chen,
the Cantonese Foreign Minister, that we were prepared to go a
very long way towards meeting their desires in regard to treaty
revision, provided that they in turn were prepared to negotiate
a settlement. But if they refused to negotiate, and insisted
on recovering the concessions by force, whether by mob violence
or by troops, Eugene Chen should be told that we should take such
steps as we thought fit. In that event we should hold
Shanghai, preferably in concert with other Powers, but in the
last resort with British forces only.
(c) That the Secretary of State for Foreign Affairs should give
approval to the general proposals in Sir Miles Lampson's
telegram No.8 of January 3rd, which should form the basis of Mr.
O'Malley's conversations with Mr. Eugene Chen in regard to the
concessions to be made to the Chinese in connection with the
revision of treaties.
(a) That the Secretary of State for Foreign Affairs should telegraph
to the Governments of France, Italy, United States of America, and
Japan, in general terms, our proposals in regard to treaty revi-
sion and our intentions in regard to the defence of Shanghai.
That Sir Miles Lampson should be authorised to make a similar
communication to the Ministers of the Powers at Peking.
(e) That the Secretary of State for Foreign Affairs should telegraph
to the Japanese Government the details of reinforcements it was
proposed to send to Shanghai, as set forth below, and to ask what
forces they were prepared to send.
Defence
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