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In regard to Draft C, it may help if I add a word of explanation as to the reason why we have suggested the deletion of the last sentence on page 2 of Enclosure 7 to Sir M. Young's despatch at (69) on the '46 papers. The sentence in question adds nothing to the argument, but simply draws attention, as a matter of interest, to the fact that, at the time of the 1931 census, only 2.3% of persons of local birth in the administrative area of the projected Municipal Council claimed to be British subjects. I originally suggested the deletion of this sentence on the ground that, although anybody could obtain this information by looking up the relevant Sessional papers, it would be better not to draw attention to it gratuitously, since it might be twisted into use as a supporting argument in favour of the rendition of Hong Kong. Mr. Mayle and I did not feel at all strongly about the point, and therefore mentioned it to Mr. Hazlerigg when he was here last week. On balance, he favoured the deletion, for the above reasons and on the ground that it is irrelevant to the argument. He also endorsed the two other amendments proposed in paragraph 2 of Draft C to Enclosure 7 to No.69. on the 46 papers.

Angalowortly

3.6.47.

The

There is no chance of getting Sir Mark Young's despatch and our reply published before he reaches this country (he is due here on the 16th June). best we can hope to do is to get the terms of our draft despatch settled here by the time of his arrival. This will, of course, give Sir Mark an opportunity of seeing the despatch in draft form, an opportunity which he will no doubt appreciate and which may go some way towards consoling him in his disappointment at the delay in the publication of his despatch and the Secretary of State's reply.

In order to carry out the above programme, however, it is necessary that the draft despatch which Mr. Galsworthy has prepared marked X should be considered now with the other two drafts. Itiwill have to be referred to the Foreign Office and Treasury for their concurrence, and I think that it would be preferable if the Secretary of State could see it before this was done. Its terms, of course, need to be considered very carefully indeed, in view of its publication.

I saw Sir Alexander Grantham yesterday and took the opportunity to give him a copy of the draft despatch, saying that we should be glad to know whether he has any comments. He has, of course, a set of the previous correspondence relating to these constitutional changes.

As Mr. Galsworthy has indicated in his minute the terms of paragraph 3(c) of the draft despatch (Draft X) are dependent on the acceptance by the

Acting

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