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Ref. No. 510

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M.E. Dening, Esq., S.E.A.C., KANDY.

My dear Benito,

.B.E. No. 74.

F3171

BRITISH EMBASSY

CHUNGKING

8th May, 1945.

am glad to hecar

I read here that some account of

I

Hurley's talks in London is on the way to me. have had long and highly coloured stories from him about his talks, especially with the Prime Minister.

According to his account

President Roosevelt was very disturbed at the idea of H.M.G. retaining Hongkong. The main reason, according to Hurley, was that Russia has an eye on an outlet on the China Coast and, if we are still at Hongkong, will support her demand by pointing out that if the British are allowed to possess a port in China there can be no objection to Russia having the same rights.

The drawback to this argument seems to me to be that, assuming the Russian policy to be as stated, they would no doubt quote the Hongkong precedent if desirable but that if Hongkong were not there they would find some other reason for getting what they want Hurley says that he means to dodge any talks about Hongkong with the Chinese but he maintains that they have every intention of getting it back and will use such methods as the boycott and so forth if it seems desirable.

I think the moral of all this is that, whatever Hurley does, the Americans at some level are likely to stoke up the Chinese appetite for Hongkong rather than the reverse.

I don't suppose, however, there is anything new to you in this.

I am sending a copy of this letter

to Dening at Kandy.

Yours sincerely,

Азваркат

J.C. Sterndale-Bennett, Esq., C.M.G., M.C., Foreign Office, London, S.. 1.

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