the Wo matter further. Chi made it clear in London that he would have to refer the Secretary of State's refusal to his Fremier and that he cxpec tod Chou En-lai to discuss the question with the Prime Ministor when he came to Peking. Be twcon thc Secretary of State's visit of laut Cctober and Chi ': Visit to London in June no senior official in the Ministry of Foreign Affairs ruiced the question of Chinese representation in Hong Kong with me; and since my return from leave neither Ol'iao Ruan Tua nor Chang Wen-chin nor Vang Tung, with all of whom 1 have had extended discussions, have refcrrca to tik matter at all. I interpret this silence as indio Buy

their view that the question is now famly louped gl a higher level, first that of the two Foreign Secretaries and now that of the two Prime Ministero, and is therefore not for discussion between Vicc Ministers and below and myself.

3.

As you know, I was not myself in favour of thic negative reply to the Chinese proposal which was re turned first by Mr. Royle and thon on the two occasions by the Secretary of Stube. I considered that it would have been more in the interests OF ILG and of Hong Kong to have treated the Chinese proposal. Tehere more constructively, first by asking the Chinese" to fully tints.3

explain and define more precisely what they wish to achieve by their proposal and secondly by being prepared to agree to a form of official Chinesc representation in Hong Kong if we can scoure reason- ably acceptable assurances on how the now arrangemeï) by would operate. These views of mine on the central issue remain unchanged.

44. My recommendation must therefore be that when the Frime Minister comes to Peking he should not simply repeat the refusal which has already been given to tho Chinese request for official representation in Hong Kong. To be so entirely negative on this important question affecting the relations between our two Countries would not be compatible with what, we hope will be the tone of the meeting between the two PTime Ministers. I think it would be right for the Prime Minister to explain once again the dificulties hich London and Hong Kong see in the way of the Chinese But I hope that he would then go on to

proposal.

SECTET

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