CO129-515-1 Piracy- legal proceedings arising from sinking of S.S. 'IRENE' 18-1-1929 - 6-9-1929 — Page 14

12

3.

Government wat expect to be presented with a claim for

compensation in respect of the losses caused to Brisish

subjects in recent years by pirates, on the ground that

these losses were das to the fact that the Chinese

authorities were incapable of suppressing piraticul motivities themselves and refused to permit ropressivo action to be undertaken by His Majesty's foress.

I mrgest the bove course of lion for your

consideration because I feel that while in the

sircumstances there is no alternative but to put in # *

full and reasoned reply to W. Tang's note, there is a risk that the very nature of that reply, if unaccompanied

by any expression of our view as to the nature of the

claim put forward, may lead the Chinese Government to

continue the diylematic serrespondence rather than let

the claim drop. I do not mean to imply that the suggested

counter-claim would necessarily succeed before an

international tribunal, bat she facts which would be

brought out in any men proseedings would be so disagreeable

from the point of view of chinese prestige that the

suggestion may, perhepu, indage the Chinese Government to

refrain from pressing the case of the "Irene" at any rate

to

to the extent of asking that it should be submitted to

arbitration.

with great truth and regard,

sir.

Your obedient gervant.

(For the georetam of state)