107

2.

npeed

3. This is all very unsatisfactory but it seems desirable to try for solution suggested in your telegram No. 1604 in spite of what Dr. Koo says, I cannot be very optimistic about its being acceptable as recovery of leased territories is a cardinal point of Chinese policy. In view, however, of the generous way in which His Majesty's Government have met the Chinese over treaty negotiations they may accept this solution as a temporary expedient.

OTP.

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