"But the continued concentration jof armed British forees at Shang-bai, now openly referred to' as the "Chinese Expeditionary Force,' as well as certain military information relating to the British plan of war operations in China, which has now] come to the knowledge of the Nationalist Government, make it impo ble for the Nationalist Government to view the British concentration at Shanghai except as an act of ley|cooreion directed against Chinese Nationalism. To sign any agreement in these circumstances would fee tantamount to signing under Jduress or force.
The Nationalist: [Government must, perforce, await the ending of this period of duress before authorizing the signing of an agreement which shall settle the status of the portion of Chines ter ritory known as the British Cones at Hankow. This period could be ended immediately: or at fany time by the British Government re-envisaging the effect on the Nationalistic mind of the present concentration of their military and naval rees at Shanghai, Unless the British objective is other than the conclusion of a peaceful arrange ment which will satisfy British sentiment without involving loss of Nationalist self-respect, it ought not to be difficult to re-create a situation enabling the British Government and the Nationalist Government to settle the concession question at Hankow in circumstances that might well inaugurate a new era in the relations between Nationalist China and Englacd as a trading Power,'
Concessions Offered Feb, 3, The British proposals to the Nationalist Government were given out here to-day, They were handed to Mr. Eugene Chen by Mr. O'Mal-ley on January 27, accompanied by the following aide memoir "When a satisfactory settlement has been reached in respect of the British Concessions Kiukiang hen given by the Natio ment that they will not countenas any alteration, except by nego nm, of the status of British con= international—settle-Majesty's Government prepared to concede at once, on the lines indicated in the enclosure hereto, a large part of what is desired of them by the Chinese Nationalist Party. So liberal and Jgenerour a step. cannot in their view be regarded otherwise than as Jan earnest of the fair: and coneilin-
animate tory spirit with which they" are
Text read from the printed page and cleaned; old type leaves the occasional error.