Note

DRAFT

Top Secret

Prime Minister

Arrangements for the Administration of Hong Kong in the event of its liberation by regular Chinese

forces

At present Hong Kong is in the operational sphere of Generalissimo Chiang Kai Shek whose Chief of Staff is the American General Wedemeyer. We therefore have to be prepared for the contingency of the Colony being liberated by Chinese Forces operating (virtually) under American direction.

According to information provided by the U.S. Chiefs' of Staff to the British Chiefs of Staff at Terminal, an offensive is

contemplated by American-trained Chinese forces in the

direction of Canton and Hong Kong in the fairly near future.

Em

2. Assuming that the Chinese are prepared in such

circumstances to hand back Hong Kong to H.M.G. it would

nevertheless be embarrassing to have to receive it from them. The question whether it is practicable for Hong Kong to be

(including Dominion) recaptured by British/forces, or with the participation

in some degree of British forces, is one for the approval

of the Chiefs of Staff. If neither course is practicable

have

to

appreciation

we shall not be able to do otherwise than accept the

position.

3. In that case it is, at all events, important that we should be able to assume the administration of this British

Colony as soon as the military situation allows, and

obtain an agreement that from the outset of any initial

period of military administration our Civil Affairs policies

should be accepted, and that the Civil Affairs administration should be conducted by British personnel.

4.

At present we have no understanding with the Chinese

x Government (as we have with the U.S.Government) in respect of

their acceptance of British Civil Affairs policies in any British territory included in their operational sphere.

A most embarrassing situation may therefore arise in the event

See Annex

/of

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