Mr. Parkin to me 277.

The oft hat alvor can now, I think, mine

б

Tr/8

11/8

278 Tel to

Tid. to Grow Hong Kong науку

no. 878 See.

279 Extract from letter from you

11/8/48

CONS.

30-7-48

Put by pen

reply to (278)

15/8 atomer

280. Poctract from minutes of C.O.S. (48) 110 Mt. held 6-8-48

281. Gov Gov.

but by. Await raply to

tel.782

(278)

BR.

14/8

alaa

19-8-48

282 Extract from official Report- 7.7.48 — (PQ2 on 54145/48)

(281) is the Governor of Hong Kong's reply to our telegram at (278) and in effect it asks the Secretary of State to go back on the decision communicated in (278) that we will not take the Kowloon case to the International Court. The Governor's policy now is "arbitration, win or lose" and I see his point. He prefers arbitration with its big risk of losing, not because he thinks the practical inconveniences resulting from a loss at arbitration would be any less objectionable than those resulting from a compromise, but because

he believes the effects on Hong Kong Chinese

opinion of a decision to go to arbitration (irrespective of the result) would be good, while the effects of

a

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