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Mr. Rees-Williams has also told me orally that he would like to be kept in close touch with developments in this matter and the Secretary of State has also minuted to that effect on his copy of Nanking telegram No.67, immediately above No.48 on this file.

Mr. Wallace's minute gives the latest developments. I should like to know whether the line taken in the draft marked 'B' and also the draft telegram marked 'C' draft telegram marked 'C', both of which have gone to the Foreign Office for comments, are agreed to here. I have asked the Foreign Office to let us

see, in draft, the note to the Chinese Ambassador, which they are preparing, when they have completed the draft and, I hope, incorporated the substance of draft 'B'. They are very anxious to get this

note off to the Chinese Ambassador as soon as possible and we shall not, I think, have very much time to consider it.

The line taken in the two drafts marked 'B' and 'C' which are submitted for agreement are, I think, in accord with the general policy of supporting the Governor and standing firm with the Chinese. The proposals in the Governor's telegram at No.31 for securing the withdrawal from Hong Kong of the National Times, the Kuomintang and the San Min Chu I Youth Corps as part of the settlement in regard to the Canton incidents and also for the regularisation of the position of the Chinese Representative in Hong Kong are being considered by the Foreign Office in conjunction with the Ambassador's comments in Nanking telegram No.67. In paragraph 4 of that telegram, the Ambassador suggests that the Kuomintang and San Min Chu proposals should be kept separate from the Canton outrages, and I think that the Foreign Office are inclined to share that view. I have, however, asked them to let us have a definite view on this point. Whether or not these proposals are to be considered separately from the Canton issue, there is no reason why we should not take them up with the Foreign Office now. I fear, however, that one difficulty about asking the Chinese to withdraw the Kuomintang and the San Min Chu National Youth Corps from Hong Kong will be that it would give rise to a request from the Chinese Government to suppress the other Chinese organisations and individuals in Hong Kong who are against the Government and possibly the expulsion of the . Individuals

Mr. Wallace and I also propose to take up with the Foreign Office the question whether the Chinese Government should not be asked to take steps to restrain the magistrate of Po-On district

thanks found from paying any further visits to the site of the

the Crow. on

this.

Kowloon Walled City. It appears from the Press that he has paid at least one visit since the occasion when he harangued the crowd under the Chinese flag before they re-erected their huts and attacked and resisted the police.

50. To P.W.S.Y Scarlett. Bey

f. Mayber

20.1.48.

20.

1.48

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