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I am unaware of attitude of H.M. Government

towards question of withdrawing from China but feel there

may be now an opportunity to remove embarrassing commitments

of defending Hong Kong in strength while at the same time

ensuring its retention and security particularly if

America interested. Commander-in-Chief agrees.

Governor who concurs fully in principle has

pointed to probability of Japan demanding as our quid pro

quo expulsion from Hong Kong of Chinese government

representative e.g. T.V. Soong.

We agree such condition would be unsympathetic.

(C.4. Telegrams)

Copies to:-

To M.0.2. for action.

M.0.1. 2. 2A.

M.I.2. 20.

Mr. Howe (F.O.).

Cdr.Loly (Admiralty)

Wing Cdr.Pelly (Air Ministry).

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