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2.

conhexion with the present negotiations to which it was entirely irrelevant. Han Lih-wu, who professed himself to recognise the reasonableness and logic of our attitude, then made the following suggestions on his own responsibility: that the Chinese Government should address to His Majesty's Government a communication stating that, while recognising that the question was not concerned with the matter now under negotiation, they desired to raise it later on at a more appropriate time. What sort of a response would His Majesty's Government be willing to make to such an approach?

5. I have felt all along that the Chinese Government have got themselves into a position over this question from which they find it difficult and perhaps impossible to withdraw, and I recommend that we should try and find a way out_along the above lines. But I fear that no reply which implies continuance of the lease will satisfy the Chinese, To appreciate their point of view one must bear in mind the history of the acquisition of various leased territories in 1898 at the time when foreign aggression against China was at its peak.

(OTP)

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