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The British delegation pointed out various objections to the alternative proposal of an international commission of enquiry into the Shakee incident. These objections are re- ferred to more fully below, in the account of the subsequent meeting of Friday the 23rd July.

The British delegation put forward a loan proposal which is referred to again ir the account of the meeting of the 23rd July.

The next meeting was held on Friday the 23rd July.

The British delegation made a short statement explaining why they did not reply in detail to the statement made by the Chinese delegation at the opening of the meeting of Wednesday, the 21st July. This short statement, and also the written statements made by the Chinese delegation on the 16th and 21st July and by the British delegation on the 19th July, are being published separately.

The Chinese delegation made a written statement as to the terms of the proposal for an international commission of enquiry into the Shakee incident. A copy of this statement is annexed hereto.

To this proposal the British delegation, at this meeting and at the meeting of Wednesday the 21st July, pointed out, inter alia, the following objections:

(a) The lapse of time since the occurrence of the incident to be enquired into would make the enquiry of no value, owing to the inevitable decay in the value of human testimony as an event recedes into the past, the difficulty of tracing witnesses, and the difficulty of securing the attendance of witnesses, many being scattered and many being of non-British nationality. Some of these considerations would apply with far less force, or not at all, to the Chinese case

(b) It might be difficult to secure the co-operation of other Powers who would be

interested or involved.

(c) The proposal would cause great delay, possibly of a year, and it offers no immediate solution of the boycott, but, at best, a long deferred solution. (d) The members of the commission of enquiry, though eminently fitted to ascer- tain facts if any reliable and complete body of testimony could be placed before them, might not be equally fitted to assume the unlimited duty of making "recommendations for the complete and final settlement" of the boycott, and could not be placed in full possession of all the political and economic considerations which might be involved.

Put very shortly, the chief objections were (1) the impossibility of a satisfactory enquiry at this late date, and (2) the fact that the proposal would defer the solution of the boycott for many months.

In spite of all the above objections the Chinese delegation pressed for the refer- ence of the proposal to the British authorities and the British delegation undertook so to refer it.

The British delegation made a written statement on the loan proposal put forward at the meeting of Wednesday the 21st July. A copy of this statement is annexed hereto. The Chinese delegation expressed their desire to refer this matter to their Government.

The Conference thereupon adjourned sine die, in order to enable the British de- legation to refer the enquiry proposal to the British authorities and the Chinese delega- tion to refer the loan proposal to their Government.