54436/48

Colonial Office,

The Church House,

2

Great Smith Street,

London, S.#.1.

14th May, 1948.

My dear Granthum

While I was in Hong Kong you mentioned to me that consideration was being given to the problem with which you would be faced in the event of the influx into Hong Kong of hordes of Chinese refugees which might be expected in the event of the collapse of the Nanking Government. I gathered that, while various possible courses were under consideration (e.g. the erection of temporary accommodation on the abandoned airfield at Kam Tin, and the provision of a water supply), your general conclusion was that it would be most undesirable to take any overt action at the present time.

Since my return I have (as you are aware) now become officially concerned with the affairs of Hong Kong, and I find that Ministers here have expressed concern that adequate preparations should be made to meet such a contingency. We should, therefore, be grateful if you could let us have a report on the measures which you have in mind and the extent to which you feel that it would be possible, 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

SIR ALEXANDER GRANTHAM, K.C.M.G.

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