CO129-502-7 China- general situation 4-3-1927 - 26-4-1927 — Page 59

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present position on both these questions.

In the course of the discussion Admiral of the Fleet

Earl Beatty made a statement in regard to the effectiveness

of the sanctions proposed. He recalled that at the Meeting

at the House of Commons on April 4th (Cabinet 23 (27)

Conclusion 1), he, on behalf of the Committee of Chiefs of

Staff, had warned the Cabinet in regard to the adverse

effect on sanctions of any serious delay. The situation

had now changed considerably and this statement required

qualification. In view of the successes of the Northern

Chinese, the period of ten days he had then mentioned could

perhaps be considerably extended, but it had to be borne in

mind that if the Northern forces gained possession of the

places where sanctions were to have been inflicted, these

particular sanctions would no longer be applicable. More-

over, to take the proposed sanctions at the present moment

against such objects as forts or arsenals which were likely

in the near future to fall into the hands of the Northern

Chinese might merely have the effect of antagonising the

Northerners, who might becounting on utilising them for thei:

own purposes. If, on the other hand, the Southern Chinese

were to regain the ascendancy, it might be that the time

within which the proposed sanctions could be applied

effectively would be extremely limited, in which case,

either