CO129-502-7 China- general situation 4-3-1927 - 26-4-1927 — Page 38

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De cypher telegram from the Governor of Hong Kong to the

Secretary of State for the Colonies.

Dated 19th April, 1927.

(Received Colonial Office 12.33 p.m. 19th April, 1927.)

41

Addressed to Secretary of State for the Colonies

repeated to Peking No. 32, Canton, Shanghai for Commander-in-

Chief and General Duncan. I held conference today to

consider Foreign Office telegram to Peking No. 288 of the 14th April and also subsequent telegrams repeated to me including Brenan's telegram No. 27 of the 17th April to the Foreign Office. There were General Luard, Admiral Boyle, Commodore P., Southorn, Halifax, Kemp and Major Roberts just returned from a visit to Shanghai. Our conclusions are (1) Chinese Nationalist Party is now divided into an extremist Hankow group and an anti-red Shanghai group under Chiang who

also controls Canton. The demands of the five Powers in

respect of Nanking have already been presented both to Chen as minister for Foreign Affairs at Hankow and to Chiang as generalissimo at Shanghai. The former has replied latter

has not.

(2) If satisfaction is not soon forthcoming from

Hankow group we consider by far the best sanction would be

to advance up the Yangtse re_occupy the British Concession at

Hank ow and destroy Hanyang arsenal. If sufficient force for

garrison is available British Concession at Kiukiang should also be re-occupied. This sanction would be definitely against extremists and would not injure Chiang. With reference to the first recommendation by the Chiefs of Staff we consider reasons for this sanction are politically and psychologically

so important that in the present circumstances its application

is essential.

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