Whichever of these courses is adopted the question also arises whether we should not indicate to the Chinese that we should be agreeable to the question of jurisdiction being referred to the International Court at The Hague.

We feel that we ought to get the views of the Governor of Hong Kong at this juncture, and, in order to crystallise the issues, we have prepared the attached draft telegram, on which we should be very grateful for your views.

Sgd. (N. L. Mayle)

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Wt. 23364/665, 8/47. 50,000. S. & S. Ltd.

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