(2)

?

23 June

With reference to your telegram of the 1st July,

I appreciate fully that a final decision cannot be made with regard to interests of Hong Kong 399

only but must have reference to policy in China

of His Majesty's Government also, but I feel most

strongly that a concession on the lines proposed

in draft agreement would play into hands of

irridentists undoubtedly and night endanger

foundations of Hong Kong. The fact that Chinese

Maritime Customs are presumably merely

endanger very

protecting their revenue which could be afforded

by machinery of Jolyn/ strengthens my view.

M10 Majesty's Minister seems to be in

with me.

agreement

To is difficult I suggest to

envisage policy which would justify such a

risk.

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