F84-82 F8 482 828 10. 82/828/10.

Colonial Office⋅

(Mi Gent) 216

86

THIS TELEGRAM IS OF PARTICULAR SECRECY AND SHOULD BE RET.. INED

BY THE AUTHORISED RECIPIENT AND NOT PASSED ON].

[CYPHER]

WAR CABINET DISTRIBUTION

FROM CHINA

FROM CHUNGKING TO FOREIGN OFFICE

Sir H. Seymour,

No. 1732

27th December 1942

D. 3.00 p.m. 27th December 1942

R. 6.45 p.m. 27th December 1942

IMMEDIATE.

Your telegram No. 1634.

igrp. undec. ? Draft note.]

They had

Dr. Koo replied to-day and said that the Chinese Government had considered the proposal to deal with the matter by exchange of notes. Their decision was that no solution would be acceptable to them unless it contained clear statement that His Majesty's Government intended to return leased territory to China. no objection to the matter being dealt with outside the Treaty and the actual arrangements being made after the war but unless this statement of His Majesty's Government's intentions were made they would not (repeat not) sign the Treaty.

2. In long discussion I pointed out that treaty was highly satisfactory to the Chinese and that it was an unaccountable decision to reject it because it did not deal with an entirely different question. I also pointed out that His Majesty's Government had gone a very long way to meet the Chinese Government in offering exchange of notes which should satisfy everyone that we are prepared to discuss the matter after the war. I could hold out no prospect that His Majesty's Government would agree to what was in effect settling the matter now, and it was most unfortunate if the very satisfactory settlement of so many important questions and the removal of so many sources of friction was to be rejected for this reason. As in the case of credit we offered to do one thing and then were blamed because we could not do something totally different.

3. Dr. Koo, who said he was only speaking in his personal capacity, said that his information was that the Treaty would not be signed unless clear "expression of our intention upon this could be given [? grp. omitted "]. He regretted this but both Government and Party were committed and could not now draw back. He referred again to the historical background of 1898 and to the very strong feeling (which undoubtedly exists) on the subject of leased territories.

4. I expect the Minister for Foreign Affairs will now inform_me of the refusal of the Chinese Government to sign the Treaty unless we make a definite statement of our intention to return leased territory to China. This will lead to a serious deterioration of our relations just when they were rapidly improving.

0.T.P.

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