ZA

I annex a brief summary of the

recent history of this matter. The present

position is that agreement has practically

been reached with the Chinese on all matters

of principle. The only thing now outstanding

the exact form of the notes to be exchanged.

We are aware that Dr. Wang, the Chinese Foreign

East lament Minister, has discussed the whole, and

in particular the allocation to Hong Kong

University, with his colleagues and other

interested persons. In these circumstances

it seems to me quite impossible for H.M.G. to

put forward now a demand for an increased

allocation to the University.

(with an concurrence)

The F.0. have

replied to Sir M. Lampson's telegram enclosed

in No.47 giving him what amount to final

instructions. Sir M. lampson has now proceeded

to Hankow but will be returning to Nanking

about the 22nd or 23rd of June. The F.O.

expect that he will then reach a final agreement

on this point suratter

I think the reply can only be that,

as already stated in our telegram of the 28th

of May (No.42) it is not possible at this

stage to reconsider the general policy. Should

the S. of S. desire to reopen the matter it will

be necessary to take it before the Cabinet and

we should have to act very quickly in order to

prevent Sir M. Lampson coming to any formal

agreement with the Chinese before a final

decision was taken.

If reply goes

goes as

Euggested, Fis. should have whics of 50,51 reply.

5. Came

11.6.29

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