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TOP SECRET
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HONG KONG
Mr. Kitson of the Foreign Office came to see me this afternoon. He explained that Mr. Bevin had had some conversation with Mr. Byrnes in New York on the subject of China. The latter had received disquieting reports from
General Marshall concerning the activities of the Central Government, and General Marshall took the view that this Government was unworthy of support in any way. Mr. Byrnes himself, who was at the time of the conversation still in office, had asked General Marshall to remain in China to see whether he could do anything to help.
Mr. Bevin felt that now that
General Marshall has succeeded Mr. Byrnes as United States Secretary of State, we should certainly not do anything to boost the present Chinese Government, and he was, therefore, definitely against making any approach to them on the subject of Hong Kong. In general, he felt that we should avoid so far as possible any publicity for Hong Kong and was not in favour of making any Ministerial statement reaffirming our intention to retain Hong Kong.
In these circumstances, Mr. Kitson asked me whether we should have any objection to the question of Hong Kong being removed from the purview of the Far East (Official) Committee if Mr. Dening, as Chairman, saw his way to take that course.
I told Mr. Kitson that we attached importance to the issue of a reassuring statement, both from the point of view of the investment of the capital which is so badly needed in Hong Kong for rehabilitation purposes and for settling the apprehensions of the Chinese population and reducing the influence of the Kuomintang. I also said that I thought there would be some advantage from our point of view in a Ministerial conclusion as to the maximum concession which we should be prepared to offer in the event of the Chinese raising the question formally. It would, for example, be of some assistance to us in considering the airport project. I then showed Mr. Kitson the first draft of a revised paper which I had dictated, dealing with, these two questions. I added that I thought that it might prove difficult, in any case, for Mr. Dening to get the matter withdrawn from the Far East Official Committee now, in view of the interest of other Departments.
Mr. Kitson said he would report my views to Mr. Dening and I said that, in the meantime • I would polish up my first draft of the revised paper and let him have it as soon as it was ready.
10.1.47.