OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

161

45

(44)

(36)

(12) on '47 file

54126/6/48.

Cypher (0.T. P.)

TO HONG KONG (Sir A.Grantham)

Sent 26th April, 1948, 20.00 hrs.

MOST IMMEDIATE.

No.494 Secret.

Ans. (46)

Following personal from Caine. Begins.

Your telegram No. 423

Unfortune tely, your telegram No.406,

which arrived here unprefixed, only came to our notice to-day, and I am very much afraid there has been misunderstanding between us. It had not (repeat not) been our intention that d.M.G, should assume the liabilities referred to in paragraph 14 or your despatch No. 292. Paragraph 5 of our telegram No.456 of 16th April bad been intended to make clear that none of the liabilities referred to in that despatch were to be assumed by H.M.G, On re-reading paragraph 14 of your despatch, I can appreciate that there may have been misunderstanding in view of the terms in which you referred to that particular liability, but it is clear that Treasury had intended to exclude those liabilities together with the rest.

We are re-examining the situation sa urgently as possible and appreciate the effect decision may have on reception of the settlement in the Colony, but I must warn you that we see very little chance of securing any further conceesion. Will telegraph again tomorrow. End a.

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