SECRET

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15. The Chinese Government's reluctance after the war to take up the British offer of a Consulate-General in Hong Kong, while accepting the opportunity to station an official representative there, will have lain in its refusal to accord the status of foreign territory to Hong Kong. The same motive probably accounts for its apparent failure to notify HMG through the customary diplomatic channels of Mr Kwok's nomination, for Mr Kwok's failure to present any credentials and for his title of Special Commissioner held concurrently with his appointment in Guangdong and Guangxi.

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