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4. On the 3rd May we received a request from the Secretary of State for Foreign Affairs that we should further consider both the above proposals in the light of a Memorandum by Sir Victor Wellesley which was communicated to us and which is reproduced in Appendix 1. We are informed that the subject was con- sidered again at the Cabinet on the 4th May, when we were asked, in dealing with this matter, to bear in mind the importance of keeping distinct the two issues referred to us, namely, our own proposal that His Majesty's Ships should at once take action against those who fired on vessels flying the British flag, and Sir Miles Lampson's proposal for early reprisals on the spot for hostile action against British interests. We were also asked by the Cabinet to consider proposals that have been made for pro- tecting British property at Chinkiang by direct or retaliatory action there (Mr. Newton's telegram, Hankow, No. 138, of the 1st May-Appendix II).
5. Before stating our recommendations, we desire to draw attention to the following passage in Sir Miles Lampson's telegram No. 821 of the 4th May in support of the policy now under consideration:-
G
What I should really like to see would be some degree of discretion given to me, in consultation with the Commander-in-Chief, to act at once and alone in the event of any further outrage or attack perpetrated on the British Flag, British Nationals or British property anywhere in China so far as resources at our disposal permit. Such action would fall under category of measures of self-defence."'
6. We recommend for approval the following draft of instructions to the Naval Commander-in-Chief, which has been prepared by the Chief of the Naval Staff :-
In view of the rapid changes in the situation in China and the increasing number of occasions on which H.M. Ships and Merchant Vessels flying the British Flag are being subjected to hostile action on the part of one or other of the contending forces in China, His Majesty's Government have empowered the Admiralty to authorise you, at your discretion, not only to reply to fire directed against H.M. Ships, but to take retaliatory action whenever fire is directed against any ship flying the British Flag.
You therefore have full discretion to take such action against the offender with all the forces at your disposal, if necessary supplemented by landing parties for the purpose of destroying forts or guns guilty of such action.
(2.) For this purpose you are authorised to draw upon the Shanghai Defence Force for any troops you may require and which the General Officer Commanding, Shanghai Force, is able to spare for this purpose.
The War Office are issuing instructions to the General Officer Commanding accordingly.
(3.) His Majesty's Government have further decided that you should be authorised to take immediate punitive action in the event of outrages which-
(i) endanger the lives of British nationals, and/or
(ii) endanger British property,
subject to the following qualifications *
(a) Such action is to be confined to cases where British lives are actually
placed in imminent peril.
(b.) In cases where property only is endangered, action of a retaliatory nature is to be taken only when there is actual deliberate and wanton destruction or seizure of property.
(c.) In all cases not covered by (a) and (b) above, or where the violation of rights only is in question, punitive action is to be taken to restore such rights only after the prior sanction of His Majesty's Government has been obtained.
(4.) In so deciding, however, you should in each case that may arise be guided by the following important considerations :—
(i.) In all measures of retaliation authorised by you it is to be borne in mind that the sole object is to prevent the recurrence of the action giving rise to it by forcing the Chinese authorities to assume and carry out the responsibility, which properly belongs to them, for
affording adequate protection. Any proposals of a wider scope or with any other purpose will still require particular reference to and sanction by His Majesty's Government.
(ii) The punishment inflicted should in no case be excessive or out of
proportion to the gravity of the offence.
(iii) Action should preferably be taken against military objectives, such
as forts, barracks or military headquarters.
(iv.) The selected objective should as far as possible be situated in the immediate vicinity of the site of the act owing to which retaliatory action is determined upon.
(v.) In no case should action be taken at a place remote from the scene
of the outrage.
(vi) Due consideration must, in all cases, be given to the safety of innocent civilians, and, so far as possible, the punishment inflicted should fall on the real offenders.
(vii.) Any military operations undertaken must be strictly limited in character, and of such a nature that they do not necessarily involve Naval or Military undertakings on an extended scale.
(5.) The extended powers which you are now authorised to employ emphasize the importance of your maintaining the closest touch with the British Minister at Peking and with the Consular authorities at the various ports and of the urgent necessity for apprising His Majesty's Government through the Admiralty of any action authorised by you under these extended powers.
CHINKIANG.
7. In regard to the practicability of action for the protection of British property at Chinkiang by direct or retaliatory action there, as proposed by Mr. Newton in his telegram of the 1st May (Appendix II), the Chief of the Naval Staff has been in communication with the Naval Commander-in-Chief, who has sent the reply contained in the Appendix III. We concur in the views expressed by the Naval Commander- in-Chief, which we note are also shared by the General Officer Commanding Shanghai Defence Force, and the Consul-General, Shanghai, and we are unable to recommend any military measure at Chinkiang at present.
2, Whitehall Gardens, S.W. 1,
May 5, 1927.
BEATTY.
(Signed)
G. F. MILNE. H. TRENCHARD.
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