C.O.

REGISTERED No.

DRAFT AND RECORD COPY

54345/47

LETTER SENT

Colonial Office,

140

Church House,

Great Smith Streev.

HOT BATE

20th November, 1947.

SECRET

L.RAFT

MR. Mayle

Bear Scott,

MR.

MR.

ENCLOSURES

Press extract for

return (131).

FURTHER ACTION

Hong Kong Future Policy

You will recall our recent correspondence on this subject, in particular your letter F.11771/376/G of the let Ceptember, in which you said I was probably right in saying that the main reason for postponing tho question of maiting a reassuring state- ment, was not that China was in no position to take sky action, but that the statement was likely to give rise to actual difficulties for 1.5.0. in the field of international relations.

I should be grateful for your views on the testion whether the time has arrived to review the position. The letter from ailea, the "Shipping

ttache" in Hong Kong, of which I sent you a copy with a letter of the 9th November, indicates that the question of rendition is very much in people's minās in Hong Kong. Allen says that opinion there appears to be almost unanimous that H... should make a bold tb declaration that it intends to retain Hong Kong in perpetuity, and that the fact that Portugal has had the courage to say "no" to feelers on the subject of

hoao has led to unfavourable comparison. Allen also says that there is no doubt that at the present time hesitations as to what may happen are holding back potential investment in the Colony.

This

A.L. SCOTT, ESU

To

[4556B) Wt. 26930/440 50m. 9/45 C.N.Ld. 748

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