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"y" in (87) and "X" in (89) confirm the view expressed by our Ambassador in Nanking in (75) that the Chinese will not raise the question of Hong Kong until their internal position is more secure, of which at present there is no sign.
(89) makes the important addition that the Chinese Foreign Secretary has stated that the Chinese regard the undertaking we gave in 1943 that we would be prepared to consider discussion of the terms of the lease of the New Territories as covering also the ceded area. It will be found, I think, that they have not the slightest ground for holding this view; the undertaking we gave was with reference to the New Territories only. This is not, however, the time to take up this point, and, in any case, whatever the context of our 1943 undertaking it will not in itself prevent the Chinese from raising the larger issue if they wish. Meanwhile, this statement is noteworthy as showing that they may not restrict their claims to the leased area if and when a formal approach is made.
The possibility, or perhaps probability, that any claims which the Chinese put forward will be for the whole of Hong Kong re-inforces, I think, the argument for a Ministerial public statement of our intention to retain the ceded area of Hong Kong.
But it also increases the risk referred to in the third paragraph of Mr. Bevin's letter at (82) that such a statement might bring about the very thing which we wish to avoid, namely that the Chinese should put forward formal claims.
The letter at (90) from the Chairman of the China Association again suggests the desirability of such a public statement of our intentions, and quotes from a letter from Mr. Gillespie, the Chairman of the Hong Kong General Chamber of Commerce, to the same effect. (Mr. Gillespie is also a member of the Legislative Council.)
? The reply should be that the arguments in favour of making such a public statement are very fully appreciated in the Colonial Office, and that the matter is under con- sideration in consultation with the Foreign Office. Draft herewith.
A. ker
18.2.1947.
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