However, we presume that these two matters
must now be considered in the light of the
implications of H.M.G.'s foreign policy as
announced last week, and that in as much as
the action proposed might weaken the position
of the present Chinese Government internally,
this constitutes an additional argument for
adopting the courses you propose.
In the circumstances, we are prepared
to agree to your views on all three points,
subject to anything further which the Gov-
ernor of Hong Kong may have to say. I
enclose a draft of a telegram which we propose
to send to Sir Alexander Grantham. Would you
very kindly let me know whether the Foreign
Office agree with it?
(87)
Obviously the most important thing is
to achieve a settlement of the vexed question
of the Chinese claim to jurisdiction within
the "Walled City of Kowloon", which will stop
the Chinese from using this as a pretext to
provoke further incidents in the future. On
this you will see from Hong Kong telegram
No.115 that the Governor is still opposed to
the suggestion made by the Chinese Government
both in Nanking and here (note enclosed with
Foreign Office compliments slip F.1320/154/10
of the 27th January) that the area should be
turned into a public garden containing the
Office of Commissioner for Foreifn Affairs.
The Governor says that any such solution
would be interpreted locally as an admission.
that the Hong Kong Government was in the wrong,
and would be regarded as a face-saving gesture
by us, and I think we must accept the Governor's
(84)
views