54126/4/46
BY HAND
204 ||
Downing Street,
S. W.1.
31st August, 1946.
Dear James,
Many thanks for your letter 8/52892/04 of the 29th August enclosing comments on our draft telegram on the subject of Hong Kong finances.
On further consideration, we feel that the retention in this telegram of the reference to the unfavourable loan prospects of Hong Kong might cause a certain amount of perturbation and perhaps lead to some discussion of what is at the moment an academic point, and we think, therefore, that this reference should be omitted.
This has been done in the revised draft, of which a copy is enclosed and which incorporates the amendments you suggest with two exceptions:-
(a) It does not include in paragraph 2 (old paragraph 3) the words "which could not easily be justified in face of persistent reports of existence of considerable wealth in the Colony" which appear in your proposed re-cast of this paragraph. I was not aware of persistent reports of existence of considerable wealth in the Colony, as distinct from South China, apart from the Times article. The Governor won't know to what we are referring. As, in any case, I think that this is a controversial passage and one that is not necessary for the purpose of the present telegram,
R.L.M. JAMES, EST
TREASURY.
/I