48

Cypher/OTP

POLITICAL DISTRIBUTION

FROM NANKING TO FOREIGN OFFICE

Sir R. Stevenson No. 67

18th January, 1948

Repeated to Hong Kong,

IMMEDIATE

D. 10.18 a.m. 18th January, 1948

R. 12.00 p.m. 18th January, 1948

Saving

Addressed Foreign Office telegram No. 67 January 18th repeated Hong Kong and Canton Saving.

LIGHT

(31) Hong Kong telegram No. 67 to Secretary of State for

(22)+(46

Colonies.

Kowloon City and Canton outrage.

I entirely agree with Government of Hong Kong regarding significance which will be attached to British reaction on the questions of Kowloon City and Canton outrage. I also agree that Chinese link these two questions in their minds and indeed it is obvious that such is the official line.

2. Point on which I differ from His Excellency

the Governor, is that I am convinced that we should insist on keeping these two questions entirely separate. In my view we should maintain the line that Canton outrage was inexcusable on any grounds and should demand a settlement of it on its merits.

3. I have already indicated my views on settlement of Kowloon City issue (my telegrams Nos 59 and 65) and I think we should pursue that matter regardless of Chinese reaction to our demands on Canton.

4. After settlement of both these issues action regarding Kuomintang and San Min Chu National Youth Corps in Hong Kong should in my opinion be considered. In this question results of enquiry suggested in the case of Canton outrage (see my telegram No. 64 second paragraph) might be useful as that should show (in the doubtful event of its being agreed by the Chinese where the responsibility for agitation lies. This question and that of suppressing National (gp. undec]s and of pressing the Chinese Government to appoint a Consular representative in the Colony should all be considered on their merits both from point of view of the colony and of Sino-British relations. Of the se much the most important is proposal to demand withdrawal of Kuomintang and its organs and [gps. undec. ? we should have no] illusion regarding the serious effect of such a demand on Sino-British relations at a moment when the Hong Kong Government are tolerating the existence on the territory of the Colony of two Chine se political parties which have been outlawed in China (Chinese Communist Party and Democratic League) and the revolutionary Kuomintang [gp. undec.] Genéral Li Chen Shen.

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