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It would appear that this difference of status between Chinese born in the Straits Settlements and those born in other parts of British Malaya can best be dealt with by a subsidiary arrangement with the Chinese Government by which, after the general principles under which a Chinese born in British territory should be afforded British protection have been agreed, those principles should, by mutual arrangement with the Chinese Government, be extended to include Chinese who have the status of

British Protected Persons.

3. The general principles under which I propose that British subjects of Chinese race born in the Straits Settlements should be afforded British protection are

those which I have already enumerated in my secret despatch referred to above as desirable in the case of British

subjects of Chinese race born in Hong Kong.

4.

Chinese who settled in the Straits Settlements, but who were not born in British territory, are not British subjects. Their children, however, of either

sex if born in British territory are British subjects and will as such be protected in all parts of the world except

in China.

If these children or the grand-children and great grand- children wish for British protection in China they must denationalize themselves or, being transient visitors,

they must register themselves at a British Consulate.

The next generation the great-great grand-children, will, if born in British territory, be given British

protection without the need for denationalization.

I realize that these limits are arbitrarily chosen, but clearly it would be unreasonable to require denationaliza-

tion

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