CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 222

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agreement made with Chen and the reoccupation of the

concession are amply justified if deemed expedient.

Our appropriate advisers are being consulted

on the military aspects of the question, I should

at the same time be glad of your views on all the

political issu ́s involved such as the possible reaction

of such reoccupation (a) upon Chang Tso-lin and the

North, (b) upon Chiang Kai-shek and the more moderate Nationalist elements, (c) its effect on the struggle

between the Moderates and the Extremists?

9. Would you consider it a fatal objection to re....

occupation were it to be necessary, for military

reasons, to withdraw the garrison again at low water

oven though no arrangement had been made in the meantime

with any Chinese authority for the future administra-

tion of the concession, or would you advise reoccupation notwithstanding the possibility of this contingency? Also bear in mind that so long as the garrison is at Hankow it may be difficult to withdraw the defence force from the International Settlement at Shanghai.

10. Sooner or later we hope to get on to terms of amity with a genuine Nationalist government or

governments of China. We do not want to take action which, however justifiable now, might place yet another formidablo obstacle in the way of good relations. procedent of Japan's Hankow garrison 1911-22 is not encouraging. You will remember the strong anti- Japanese feeling which it aroused.

The

Repeat to Shanghai for Commander-in-Chief.