3

Tel. of 8-11-26, flagrad in 20815/26.

absence of any special intimation of the

confidentiality of the matter, Sir C. Clementi

should have known from the nature of the

subject that he should not have consulted

the Hong Kong merchants or the Chinese

Members of his Executive Council. On the

whole, since a Governor of Hong Kong is

expected to be more used to diplomatic methods

than most Governors, I think Sir C. Clementi

should have been aware of this. It must be

remembered as Foreign Office point out that

he was warned in 1926 against disclosing

canfidential information even to his Executive

Council it being specially explained to him

that the practice was objectionable because

it might involve a leakage of the intentions

of His Majesty's Government on a matter of

policy

precisely the same issue as the

present one. (See tel.of 18.11.26 in 20815/26).

It does not appear that any great harm

has been caused by his disclosure; possibly

the Shanghai merchants may have been a little

annoyed on learning that the Hong Kong

merchants had information in advance of theirs.

(It may be pointed out that business interests

in London, having connections with China, were

not consulted at all). The Foreign Office

also feared that there might be some risk of

disclosure by the Chinese Members of the

Executive Council to Chinese friends through

whom some hint of our intention might have

reached the Chinese Government. So far as we

are aware, nothing of the sort happened. On

the

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