Copy.

(F9769/376/G)

No. S/O 545(8704/1077/47)

SECRET

BRITISH EMBASSY,

NANKING.

3rd July, 1947.

(My dear George),

(118)

Hardly had His Excellency completed his letter to you. No. S/O 544 of 3rd July relating the gist of a conversation with the Portuguese Minister, when I received a personal and confidential letter from the Indian Ambassador, Menon, of which a copy is enclosed disclosing that the question of demanding back Goa and other Portuguese holdings in India was very much in the mind of the Indian Government to be.

I enclose a copy of my reply which I feel cannot possibly sell the pass either of Macao or what is more important damage Hong Kong in the eyes of whoever may see it. The implication is intended to appear that it is rather premature to seek to take over such places before one's own house is in order and that anyhow these things should be handled as between gentlemen. There appeared moreover to be no objection in passing on to Menon information which his own staff could have devilled out for him if they had more experience of China.

(Yours ever)

G.V. Kitson, Esi., C.B.E.

China Department,

Foreign Office,

London, S.W.1.

(Leo H. Lamb)

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