or expedient to make preparations in

advance so that you would be in a position

to deal with this emergency if it should

arise.

In this connection, you may like to

know that our Legal Advisers are now

engaged on an examination of the points.

submitted in MacDougall's confidential

letter No. 1/1166/470 of the 4th March

with a view to reaching a definite conclusion

with the Foreign Office on the vexed

question of the alleged right of Chinese

to enter Hong Kong. The Board of Trade

have also been reminded of the importance

of this issue in relation to the proposals

for a new commercial treaty with China.

Your Incerty

JB

Linebuttan

(No. 1 on 54064/48)

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