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these proposals with Sir C. Clementi who

is now on leave of absence from Hong Kong

and who has made it clear to me that the

arrangements contemplated have the full

concurrence of the Hong Kong Govt. and are

welcomed by the Hong Kong Chinese generally.

It is understood, of course, that the

arrangements will apply in the first instance

only to the provinces of Kwangtung and Kwangsi

and that if they should prove successful in

operation, an attempt will be made later to

introduce other provincial Govts. to adopt

a similar procedure.

2. I have now to request that if you

also concur in these proposals you will

cause the new regulations issued by the

Canton Govt. to be brought to the notice

of Chinese British subjects in the S.S. who

may desire to obtain recognition as such by

the British Consulates and the Chinese

Authorities in the two Kwang provinces. It

should be understood by Chinese generally

that

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