[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]
From: CHINA.
Decypher.
Sir A. Clark Kerr
(Shanghai) 27th June 1958.
D.
W/T
28th June 1958.
R.
28th June 1938.
No. 1020.
0000000000000000000000000000
Your telegram No.544.
It is to be assumed that by the time I reach Hankow Chinese
Government will have discussed communication with you made to
Chinese Ambassador and will ask my help to devise some alternative
scheme which would command support of His Majesty's Government.
So far as I can see they have no other acceptable security to offer for such a large sum as they need and there is no advice that I could usefully give them, but it occurs to me that if His Majesty's Government are seriously considering recent proposal of Governor
of Hongkong about the leased territories it might be possible to
link this question up with that of Wolfram and antimony and to
make extension of lease or purchase of territories consideration upon which His Majesty's Government would back a currency loan
secured on two minerals,
I appreciate that His Majesty's Government will not yet have
had time to exercise a decision about Hongkong but I might perhaps
take advantage of my visit to Hankow to feel the ground a little.
For instance, would there be any objection to my suggesting a
train of thought about leased territories privately through
Donald as purely an idea of my own?
Addressed Foreign uffice. Repeated saving Tokyo and Hongkong.