CO129-502-7 China- general situation 4-3-1927 - 26-4-1927 — Page 54

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10.

SUMMARY OF CONCLUSIONS AND

RECOMMENDATIONS.

(1) In present conditions the destruction

or occupation of the forts on the Yungboo and of the arsenal at Hankow shorld be abandoned as a measure of sanction, though, if circumstances change, it might again prove useful:

(2) In present conditions the re-occupation of the British Concession at Hankow, involving the maintenance of a military garrison there, is not considered a feasible operation:

(3) The seizure of the Cantonese Fleet is a

feasible operation which should exercise some effect on the Cantonese. We feel bound to mention, however, that the disturbed situation at Amoy has been improved owing to the efforts of the Southern Chinese naval authorities:

(4) Although the seizure of Customs revenues

is not a strictly military sanction, we venture to recommend that the Secretary of State for Foreign Affairs should consult the Consul-General at Shanghai in regard to the proposal contained in Sir Miles Lampson's telegram No. 674 of April 11th in favour of impounding the proceeds of the surtaxes at Shenghai. We suggest that the Secretary of State should at the same time invite the views of the Consul-General as to the effect of such action on Chiang Kai-shek's military position:

(5) The destruction of the Dane Island and

Bogue Forts covering the sea approaches to Canton is another possible form of sanction. We reserve our final opinion on this until we have received replies to telegrams which are being sent to the General Officer Commanding and the Senior Naval Officer and a detailed report from our Joint Planning Sub-Committee:

(6) In connection with (5) we recommend that

the Secretary of State for Foreign Affairs should send a telegram to the Acting Consul-General at Canton warning him that the Senior Naval Officer may ask whether there is any political objection to an air reconnaissance of the Dane Island and Bogue forts if the Senior Naval Officer himself considers this course desirable. We venture to suggest that the Secretary of State should consider the desirability of himself giving the Acting Consul-General some guidance on the political side of this proposal We also suggest that the Governor of Hong-Kong should be informed.

Whitehall Gardens, S.W.1.

April 14, 1927.

9

BEATTY.

Signed G.F.MILNE.

H. TRENCHARD.

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