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No. 10

TOP SHORT.

FOREIGN OFFICE, S.W.1.,

28th July, 1945.

192

My dear Foulds,

I enclose a copy of a letter which Sir G. Gater is sending by today's bag to Sår A. Cadogan ayout Hong Kong. It arises out of the information comicated to our Chiefs of Staff by the U.S. Chiefs of Staff, at their first meeting st TEXINAL, to the effect that a Chinese offensive wes being repared with the object of advancing in the direction of Canton and possibly later to Hong Kong.

2. Up till the opening of the Potsdam Conference there bad been no indication as to the moment or the manner of the recapture of Hong Kong. As part of the Chinese mainland it is in Chisng Fai-shek's theatre of co rend. Nevertheless, until just recently, it has seemed that the most likely way in which it would be recaptured was by a seaborne operation by the Americans; or conceivably by ourselves after arrange- ment with the Americans, seeing that any British expedition would have to pass through the American theatre.

3. Colonial office plans for the reauption of the sāministration of Hong Kong have hitherto been based on the assumption that its recapture would be by American or Britásh forces. They are now faced unexpectedly with the necessity of coming to some arrangement with Chiang Kai-shek; and we agree with them that the opportunity of TF KINAL ought to be taken, if possible, to ensure that our attempts to reach such an arrangement do not peet with obstruption from the American

L. H. Foulds Esq.,

TENTHAL.

side/

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