After the retirement of the naval force from the British
Concession at Hankow the Cantonese flag was run up on the principal buildings. It need not be doubted that Mr. Chen desires an immediate renewal of business. He has been urging the British merchants to reopen their offices. The Chinese merchants have been appealing not only to Mr. Chen but to the British merchants whom they like and trust. Mr. Chen is, in short, brought face to face with the fact that China is doomed if she cannot trade. Thus the situation has developed with a curious irony. The British merchants are now the boycotters. They say, naturally enough, that they did not get the security they were promised, that the Concession was seized in violation of the Treaty, and that they cannot trust themselves to the mercies of the Kuomintang unless they are given better guarantees. They arc, in fact, waiting to see what comes of the negotiations between Mr. Chen and Mr. O'Malley, the Acting Counsellor of the British Legation in Peking, who has just arrived at Han- kow to continue the discussions begun by Sir Miles Lampson. Meanwhile the Union Jack has been restored to the Concession.
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