CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 79

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that Eugene Chen had virtually offered to accept the terms

recently stated by the Secretary of State for Foreign Affairs,

with their full assent, in the House of Commons, and that for

the British Government to refuse the terms at the very

moment when British troops have arrived at Shanghai would be to

get themselves represented as responsible for a break and as

having been merely playing for time pending the arrival of the

troops. Moreover, an offer to sign would either result in the

conclusion of agreementa, as desired, or at the worst, throw on

the Cantonese the onus for a break.

The Cabinet agreed

(a) On the Political Issue That the Secretary of State

for Foreign Affairs shoưd authorise Ur. O'Malley to

sign the Hankow and Kiukiang agreements. And that the

at Secretary of State should arrange, such moment and in

such manner as he deemed best (e.g. either at Hankow

or in Parliament, or both) to take note of the first

two paragraphs of the statement to be made by Mr.

Eugene Cnen (Appendix) setting cut the undertaking

not to attack Shanghai, and, ca regards the third

paragraph, to make clear that His Majesty's

(6)

Avet

Government could not bind themsolves to enter into

negotiations with official persons in any part of Chin

where such persons represent a de facto authority:

As regards the Indian fixed Brigade. That the

que tion of the possible return to India of the Indiar

Mixed Brigade was not urgent, as the second Brigade

of the Shanghai Defence Force could rot begin to

arrive at Shanghai before February 28th, and could be

postponed for a week:

(c) As regards the second Brigade of the Shanghai

Defence Force. That, notwithstanding the strong

political objections to billeting troops outside the

international settlement, evenon British property,

in view of the Naval Commander-in-Chief's statement

that this measure was necessary for tactical