Sessional_Paper_1926 — Page 100

96

No. 9.

SECOND CHINESE COMMUNIQUÉ.

(EXTRACTED FROM THE CANTON GAZETTE OF THURSDAY, THE 22ND JULY, 1926.)

The Conference resumed this morning (Wednesday) at 10.30 when the Chinese de- legation replied to the British statement read at the last sitting on July 19. This was followed by the Chinese delegation outlining two proposals in the following terms:

"Since the Chinese delegation affirm that the British are in the wrong on the three points stated in our first statement, namely, (1) the Shameen-Shakee shooting, (2) the Blockade of Canton by Hongkong, and (3) the Refusal of Negotiation implied in the summary rejection of the demands formulated by the Nationalist Government immediately after the shooting, and since the British delegation deny being in the wrong, it is clear that this Conference must entrust a third party in the form of an impartial court of enquiry to decide the controversial issue involved. The Nationalist Government will abide by the findings of an impartial court of enquiry. We hope that the British delegation will take the same attitude.

"If, however, the British delegation is desirous, without waiting for further enquiry, of bringing about the resumption of normal relations between Hongkong and the ter- ritories of the Nationalist Government (Kuangtung, Kuangsi, Hunan) as quickly as possible, the Chinese delegation, likewise desirous of resuming such relations at the earliest date. propose that the burden arising from an immediate settlement of the Anti-British Boycott he shared by both parties. That burden is (1)The Chinese people who have sustained the boycott for a year must be given adequate guarantees that in the future there will be no repetition of the action of June 23, 1925. These guarantees lie in regulating the garrison- ing of the Shameen and in regulating the navigation and stationing of British gunboats on the river system of the territories of the Nationalist Government. (2) The bereaved families of the dead and the wounded on June 23, 1925, have to be consoled and compensated on the basis of full justice. And (3) the large unemployment in consequence of the break of normal relations between Hongkong and Kuangtung, which has been a serious problem and continues to be one, requires large sums of money to be raised for its solution in order to remove serious obstacles in the way of a resumption of normal relations between the Colony and the territories of the Nationalist Government.

"It is clear that if both sides are actuated by the same desire to arrive at an amicable settlement, both sides must be prepared to make serious concessions.'

In reply to the first proposal for an impartial court of enquiry, the British de- legation stated that they would have to consult their Government. And as regards the second proposal for a sharing of the burden arising from an immediate settlement of the Anti-British Boycott, they rejected the same and categorically declared that no settlement involving the payment of compensation could be entertained by them.

The Chinese delegation thereupon proposed that, pending the holding of the sug- gested court of enquiry, a loan might be raised, partly through its own resources and partly by Hongkong, to enable the Nationalist Government to meet the heavy financial burden involved in an immediate settlement of the Anti-British Boycott, and that the Hongkong section of such loan would also be repaid if the court of enquiry decided in favour of the British. This proposal was also rejected by the British delegation.

The Chinese delegation then inquired if the British delegation had any proposal to make. The latter stated that they were prepared to agree to a settlement of the dispute in the form of an industrial loan for the development of the Port of Whampoa conditional on the construction of the loopline connecting the Canton-Hankow and Canton-Kowloon railways and provisions of control similar to those in the Canton-Kowloon Railway Agree-. ment regarding the employment of a British Engineer-in-chief and દી British Chief- Accountant. The British delegation intimated that they were ready to consider alternative industrial enterprises like the building of a railway to Bias Bay or to Swatow. The Chinese delegation replied that they would have to take time to consider this British proposal.

Canton, July 21, 1926.