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Their view is fully stated in paragraphs 7 and 8 of the statement recently telegraphed to Mr. Lampson (see Part II of Foreign Office telegram to Shanghai No. 31 of the 2nd December). The following are the salient passages:---
"During this possibly very prolonged period of uncertainty the Powers can only adopt an expectant attitude and endeavour to shape developments so far as possible in conformity with the realities of the situation, so that ultimately, when treaty revision becomes possible, it will be found that part at least of the revision has already been effected on satisfactory lines.
"Every case should be considered on its merits, and the Powers should be prepared to consider in a sympathetic spirit any reasonable proposals that the Chinese authorities, wherever situated, may make, even if contrary to strict interpretation of treaty rights, in return for fair and considerate treatment of foreign interests.
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Certain recommendations in the report of the Commission on Extra- Territoriality, and certain other reforms not covered by that commission's report, but falling under the general heading of extra-territoriality, can be carried into effect, even in present conditions, without great delay."
27. The questions for decision therefore are
(a.) Whether, on the assumption that His Majesty's Government desire to pursue the policy defined above in discussion or negotiation with the Southern or any local Government, they can do so without committing themselves to recognition of such a Government either as the Government of China or as the Government of a new independent State; and (b.) Whether the Southern Government would be prepared to give us a satisfactory agreement in return for a kind of recognition which is not recognition in the strict sense of the term, but which is sufficient to permit of the initiation, if not the conclusion, of negotiation for treaty revision between the two parties.
(a.) Is a matter for the legal adviser.
(b.) Is for Mr. Lampson to discover from Mr. Chen.
28. As regards this, and as regards (ii) above, the prospects, as disclosed by Mr. Lampson's recent interviews with Mr. Chen at Hankow, are still somewhat uncertain.
The points made by Mr. Chen were --
(i.) That although his Government claim to be the Government of China and would not recognise the splitting up of China, it might, nevertheless, be possible to devise a formula according recognition to the Nationalist Government in respect of territory which they now control or may in the future control.
(ii) That if we recognise Canton in this way, we must recognise no one else. (iii.) That his Government desired replacement of existing treaties by other treaties based on the principle of equality and reciprocity, i.e., not the revision, but the abolition of the unequal treaties.
(iv.) That, nevertheless, their intention is that existing treaties shall stand
altered by negotiation.
(v.) That if we negotiate new treaties with Canton, the benefits must not
accrue to other local Governments.
(vi.) That his Government would not negotiate collectively with the Powers as
regards either recognition or the treaties.
(vii.) That his Government had every desire to preserve the Customs Administra- tion, but that it would have to be subordinate to them in the areas which they controlled.
29.
Mr. Lampson's present opinion is that recognition of the Canton Govern- ment in some form or another is inevitable sooner or later, and that if this is admitted, we should not delay longer than necessary in giving it.
W. STRANG.
Foreign Office, December 12, 1926.
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