CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 86

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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Additional charges may be the last straw.

Our first duty is surely to protect their interests

seeing that we are only in China for trade.

(5) Japan at least is most unlikely to agree to

such a surrender; even Washington surtaxes have not yet

received her imprimatur.

(6) Finally may I put in a special plea agairst

resort to the form of bluff towards end of paragraph

numbered 2 of your telegram? It would almost certainly

be called and we should merely look foolish. Also

would it be fair to cur traders to say we will support

them knowing in our hearts that we do not in the last

resort mean to do 90?

I am convinced that if we did mean business it

would be best to guarantee against having to take strong- measures but I am equally convinced mere bluff with nothing behind it is false policy especially with an

oriental race.

(7) one further point; I fear His Majesty's Government misread position if they look for anything in

nature of a conference on tariff matters at Shanghai.

The day for such things is over. Chinese now take what

they want unless prevented from doing so; they do not stop to debate point.

To sum up I would strongly advise that we go slowly as regards general question until we know attitude of other Powers and especially Japan. If Japan is not ready for strong action I can quite see that there are arguments against cur taking it alone though I should

prefer.....

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