announcement to the Chinese at the earliest

convenient opportunity. Mr. Wallace and I have considered the addust

e revision of

paragraphs 2 and 3 of the Ambassador's draft statement, suggested by the Governor of Hong Kong in his telegram at No.169.

The main changes in the Governor's re-draft are the substitution of two named trustees (the Colonial Secretary and the Chinese Special Commissioner for Foreign Affairs in Hong Kong) for a Committee of 10 unnamed custodians. Mr. Roberts- Wray will no doubt say whether there are likely to be any insuperable difficulties in connection with the trustee idea.

We think that the word "in" has probably been omitted inadvertently after the word "this" in line one of paragraph 2 of the Governor's revised draft, and the first part of the revised paragraph 3 does not seem to be quite right. It should either be "The laws of the Colony apply and it is further agreed, etc., etc.," or else "It is further agreed

that the laws of the Colony will apply etc.". It is possible, however, that the Governor has left out the word "will" intentionally.

In the interests of placing the Ambassador in a position to present a draft joint announcement to the Chinese as quickly as possible, we suggest, subject to any comments Mr. Roberts-Wray may have on the legal aspect, that he should propose to the Foreign Office that the Ambassador should be authorised to present a draft announcement to the Chinese at a convenient time, incorporating the Governor's suggested amendments to his draft, unless he sees any objection to them, in which case he will no doubt telegraph further. The Foreign Office telegram should we think point out that the word "in" appears to have been omitted from the first line of the Governor's re-draft of paragraph 2.

20.2.48.

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