F.7/35. CYPILLR (TYPEX)

Afaira

OUTWARD TELEGRAM

FROM:

D.0.

10:

CANADA

(GOVT.)

AUSTRALIA

NEW ZEALAND

#

SOUTH AFRICA

"

(Sent 7.45 p.m. 29th Dec., 1942.)

S.D.

233

58

D. No. 691 SECRET.

My telegram 26th December D. No. 583 paragraph 4. Kowloon leased territories. Dr. Koo replied on December 27th to His Majesty's Ambassador that Chinese Government had considered proposal outlined in my telegram 24th December D. No. 575. Their decision was that no solution would be acceptable unless it contained a clear statement that United Kingdom Government intended to return leased territory to China. Chinese Government had no objection to the matter being dealt with outside the Treaty and actual arrangements being made after the war, but unless this statement of our intention were made they would not sign the Treaty. Dr. Kco said that he was, only speaking in his personal capacity.

2.

We have offered to substitute in passage mentioned in my telegram D. No. 575 phrase "question of lease" for "terms of lease" which has raised suspicions of Chinese negotiators and phrase "when victory is won" for "at the Peace Conference" but His Majesty's Anbassador was informed on 28th December that if Chinese persisted we should have to do without the Treaty. (In this connexion please see paragraph 2 of my 'telegram D. No. 522 of 8th December).

3. In telegram of 28th December which crossed our telegram Hia liajesty's Ambacaador reports that Minister of Foreign Affairs had informed him on that day that Chinese Government could not accept solution in our proposed exchange of notes. He appealed earnestly for reconsideration of question emphasizing in particular feeling of Chinese Government and people against the continued existence of leased territories and urged that we should agree to declare now our readiness to return leased territories to China details to be negotiated later. Dr. Soong refrained from stating categorically that in absence of such a declaration Chinese Government would not sign treaty. His Majesty's Ambassador is not certain whether Chinese Government will in fact adopt such an attitude. We are informing United States Government of position with a view to enlisting their help.

Copy to:-

W.C.0. F.O.

0°%

B: 0. 0.0. Treasury D.0.T. 3/Trade

Sir E. Bridges Sir Basil Newton

Mr. H. Ashley Clarke Mr. R.K. W. Sloan

Mr. H.A. Rumbolâ

Mr. W.T. Annan Mr. Monson

Mr. N.E. Young Mr. J., Golaby Mr. A.R. Fraser,

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