Mr. Rees-Williams discussed this matter with us yesterday in the light of the further telegram from Hong Kong at No. 271.
Mr. Rees-Williams indicated that, like the Governor of Hong Kong, he had no faith in the solution of this problem which was proposed in our draft telegram below No. 267. As I understand it, his reasons for this view were as follows :-
(a) if we hand over this area to the Chinese
Government for the pruposes of an office
or residential building and compound, either for a Chinese Consul General or for the Chinese representative in Hong Kong, it will be acclaimed by the Chinese as a 'climb down' by H.M.G., and our prestige will suffer accordingly;
(b) that there were #w possibilities for dispute over the exercise of jurisdiction
in such a compound;
and
(c) that, if the present regime in China should another
fall, and if in consequence inese regime
were established in the north of Chiná and а separate conglomerate administration were set up in Kwangtung, there would be misse possibilities for dispute as to which
Chinese authorities were to have the use of this building in Kowloon.
I explained to Mr. Rees-Williams that, at our meeting with the Foreign Office and the Ministry of Defence, from which the draft telegram emerged, we were assured by the Foreign Office Legal Adviser that the document in which the proposed arrangement was to be set out could be so worded as to ensure our enjoyment of jurisdiction in the area without specifically mentioning it; i.e. the document could be so worded as to just sufficiently save the Chinese face without giving them the grounds on which to claim a diplomatic victory.
I explained that the draft telegram was to be considered by the Chiefs of Staff on Friday, that in this connection it would be necessary to send them the Hong Kong telegram at No. 271, and that we in the Department felt that it would be necessary to indicate to the Chiefs of Staff whether or not what was said in that telegram modified the Colonial Office view of the proposals in the draft telegram. In these circumstances, Mr. Rees-Williams hoped that it would be possible for the Secretary of State to give a ruling on the matter before Friday. It was, however, not found possible to arrange a meeting with the Secretary of State, and I, therefore, had no alternative but to suggest to the Chiefs of Staff Secretariat that the meeting should be deferred until we could indicate to them definitely what the Colonial Office view of the situa- tion now is in the light of the Governor's telegram. The matter has, therefore, been deferred until the meeting of the Chiefs of Staff on Friday, the 6th August. Group Captain Stapleton urged on me, however, that, if it is to be taken on that day, the Office of the Chiefs of Staff should be acquainted with the Colonial Office view on Tuesday, or at the latest on Wednesday, of next week.
дра
29.7.1948.
Since dictating this minute I have now added the telegram at No. 272,containing a message from the Embassy at
/ Nanking