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CONFIDENTIAL
DESKBY FCO 17O9OOZ
CONFIDENTIAL
HCK 040/2.
НКК
17 JAN 1935
OP COPY
59
FM HONG KONG 170655Z JAN 35
TO IMMEDIATE FCO
TELEGRAM NUMBER 147 OF 17 JANUARY
INFO IMMEDIATE HONG KONG GOVERNMENT OFFICE LONDON, PEKING,
UKMIS NEW YORK (FOR SIR E. YOUDE)
YOUR TELNO 103: HONG KONG BILL: UMELCO DELEGATION.
1. YOUR PARAS 1 AND 2. UMELCO ARE ENTIRELY CONSCIOUS OF THE SUDDENNESS OF THEIR DECISION AND OF THE INCONVENIENCE THIS WOULD BE LIKELY TO CAUSE. BUT THEY PERCEIVED CONSIDERABLE DANGERS IN MR POWELL'S UNFORESEEN DEMARCHE (SEE FURTHER PARA 3 BELOW) AND FELT COMPELLED TO ACT.
2. THE PRESS RELEASE WAS WRITTEN AND ISSUED BY UMELCO AND, AS USUAL, A COPY WAS GIVEN TO ME JUST BEFORE ISSUE AS A MATTER OF COURTESY. THE REFERENCE TO POSSIBLE MEETINGS WITH MINISTERS WAS INCLUDED TO ANTICIPATE WHAT EXPERIENCE HAD SHOWN TO BE AN INEVITABLE QUESTION FROM THE MEDIA (AND, AFTER ALL, IT IS A PERFECTLY REASONABLE EXPECTATION THAT THE SENIOR UNOFFICIAL OF EXCO SHOULD CALL ON MINISTERS, HOWEVER BRIEFLY, WHEN HE IS IN LONDON). SIR S.Y. MADE IT VERY CLEAR TO ME THAT HE AND HIS COLLEAGUES WOULD UNDERSTAND IF A CALL COULD NOT BE ARRANGED DUE TO THE SHORT NOTICE, AND THAT HE WOULD BE QUITE PREPARED TO EXPLAIN PUBLICLY THAT THIS WAS NOT A REBUFF TO UMELCO. IN THE CIRCUMSTANCES, I SEE NO NEED TO SPEAK TO SIR S.Y. AS REQUESTED IN YOUR PARA 2. IN ANY CASE, HE IS NOW ON HIS WAY TO PEKING ON NUCLEAR POWER BUSINESS.
3. YOUR PARAS 3 AND 4. THE FACT IS THAT, WHATEVER THEIR EARLIER VIEWS MAY HAVE BEEN, UMELCO HAVE NOW (REPEAT NOW) ACCEPTED THE INCLUSION OF ENABLING PROVISIONS ON NATIONALITY IN THE HONG KONG BILL AND THE ORDER-IN-COUNCIL ROUTE. THIS WAS THE RESULT OF CAREFUL EXPLANATION ON OUR PART (AND PARTICULARLY OF THE GOVERNOR'S IN EXCO) BOTH OF THE NECESSITY TO SET OUT IN THE BILL THE FRAMEWORK OF THE LEGISLATION NECESSARY TO IMPLEMENT THE NATIONALITY PROVISIONS IN THE UK MEMORANDUM (PARA 3 OF YOUR TELNO 23) AND OF THE DANGERS OF LEAVING NATIONALITY ISSUES OPEN TO A LATER, SEPARATE BILL. THEY THEN CAME TO SEE THAT THOSE DANGERS WERE ALREADY ON THE HORIZON WITH THE AMENDMENT MOVED BY MR POWELL. THEY RECALLED THAT MR POWELL QUERIED THE WHOLE BASIS OF THE UK MEMORANDUM IN THE 5 DECEMBER DEBATE IN THE HOUSE OF COMMONS, AND (AS MISS MARIA TAM TOLD REPORTERS AT THE AIRPORT YESTERDAY EVENING) THEY FELT THEY SHOULD BE IN LONDON TO PROTECT THE INTERESTS OF THE PEOPLE OF HONG KONG SHOULD THERE BE ANY ATTEMPT TO USE THE OPPORTUNITY TO OPEN UP IRRELEVANT ISSUES WHICH MIGHT BE DETRIMENTAL TO US. THE UNDER- TAKING WHICH UMELCO WILL BE SEEKING IS THAT THE NEW STATUS WILL BE DULY GIVEN, I.E. THAT THE UNDERTAKINGS CONTAINED IN THE UK MEMORANDUM
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