CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 190

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Staff Report (Paper C.P. 126 (27)*—revised in accordance with the Report of the Chiefs of Staff Committee and the Cabinet discussion), setting forth the dangers of the situation and the limitations of our own means of co-operation for the defence of these places;

(b.) That the Secretary of State for Foreign Affairs should send a telegram to Sir Miles Lampson explaining the situation and stating that, failing a satisfactory response to his representations to Tokyo and Washington, his existing instructions must stand, viz., to evacuate Peking and Tientsin in the event of danger, of which he was the only possible judge;

(c.) In regard to Sanctions: That the Secretary of State for Foreign Affairs should make strong representations to the Powers who had co-operated in the representations to the Nationalist Government in respect of the Nanking outrages, in favour of united action in such sanctions as might be deemed appropriate, and that, pending the result of these representations, there could be no question of isolated action by this country in applying sanctions.

The question of isolated action in the event of a refusal by other Powers to co-operate was reserved for later consideration in case of necessity;

(d.) In regard to the form of Sanctions: That the Committee of Chiefs of Staff should meet to re-examine the question in the light of the present situation on the alternative hypotheses of the sanctions being undertaken by an inter- national force or by this country alone. The Chiefs of Staff Committee were asked to keep this subject constantly under review as the situation changes from time to time.'

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In accordance with the Conclusions of the Cabinet at their Meeting held on the 13th April, the Chiefs of Staff met on the 14th April, 1927, to re-examine the question of Sanctions in the event of non-compliance by the Cantonese Government with the recent ultimatum.

As a result of their deliberations the Chiefs of Staff drew up an interim report (C.I.D. Paper No. 792-B), the recommendations of which were as follows:-

Extract from Interim Report 792-B :-

(a.) In present conditions, the destruction or occupation of the forts on the Yangtse and of the arsenal at Hankow should be abandoned as a measure of sanction, though, if circumstances changed it might again prove useful.

(b.) In present conditions, the reoccupation of the British Concession at Hankow, involving the maintenance of a military garrison there, is not considered a feasible operation.

(c.) 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.

(d.) 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 the 11th April in favour of impounding the proceeds of the surtaxes at Shanghai. 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.

(e.) 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.

(f.) In connection with (e), 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."

Also C.I.D. Paper No. 791-B.

† Not printed.

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