CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 200

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the precise position there, and that he would report

his conclusions and recommendations to Sir Miles

Lampson, the British Minister at Peking, who would

report to the Foreign Office. A good deal appeared

to turn upon whether Eugane Chen was free to negotiate

or whether he was dominated by the Eolshevist element

and the Russian agent Borodin. To assist Sir Miles

Lampson, he proposed to telegraph a summary of the

Report of the Chiefs of Staff Committee, as well as the

full text of their conclusions.

In the course of the discussion mention vas

made of the fact that the British Government, from whom

as lessees of the Concessions at Treaty Ports in China

commercial firms obtained their leases, had financial

interests to an amount of about £3,000,000.

The question was also considered as to whether

Mr. O'Malley should be instructed to refuse to

continue his conversations with Eugene Chen until the

British Concession had been restored (See Conclusion

A good deal of attention was given to the uuestion

of the protection of British interests at Shanghai in

the event of attack. A suggestion was made that Eugene

Chen ought to be left under no illusions as to the

intention of the Fowers concerned to hold Shanghai.

The attention of the Chief of the Imperial

General Staff was invited to the question of whether the

local forces at Shanghai were provided with adequate

supplies and reserves of firearms, ammunition and

other war material of all kinds for serious operations

of the nature indicated in the Report of the Chiefs of

Staff Sub-Committee,

After

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