I agree with Mr. Wallace that we must try to reach a conclusion as to the next step to be taken as soon as possible, but I am exceedingly doubtful whether we can get all this tidied up before Mr. Bevin sees the Foreign Minister on the 28th. The following courses appear to be open:-
file).
(a) To stick to our guns and tell. Hong Kong firmly that we won't take the case to arbitration.
(b) If that course is adopted, to tell Hong Kong flatly that a compromise solution has got to be found whether they like it or not. (Before we can do that it seems to me that we must have the views of the Chiefs of Staff on the value of the arguments put up in No. 13 against any compromise in- volving handing over of jurisdiction in the Walled City to the Chinese Government. I must confess that I should find it very difficult to attempt to force the hand of the Hong Kong Government, in view of what the Governor has said in his telegram, unless we can be told by the highest military authority here that there is nothing really in the arguments put forward.)
(c) To go against the advice of the Law
Officers and be prepared to take the Chinese to arbitration. The wisdom of doing that would depend on the strength which can be attributed to the arguments on military grounds put up by the military experts, and to the answer to the point raised in 4(c) of Mr. Wallace's minute. Would the Chiefs of Staff be prepared to put their expert witnesses into the box for cross-examination? Myself, I feel that, unless the Law Officers were prepared to amend their opinion, to go against their advice would be virtually impossible.7
(d) To adopt an attitude of masterly in-
activity on the whole question in spite of Chinese pressure. As to this possibility see point 8 in the note on our discussion with Sir Ralph Stevenson at No. 287 on this file. (Such a course would involve getting the F.0. to give up any hope of compensation for the Canton "incident.)
I think a further meeting following up that one which you presided over on 2nd September is called for quickly before we have a discussion with Ministers here (see your marginal note of 5th August on this
Will you or Sir C. Jeffries wish to preside? F.O., Ministry of Defence and ourselves, with Sir S. Abrahams assistance, should, I think, suffice. I am engaged on Monday morning but am free on Monday afternoon.
we
Au huw
Tuping tofis a meeting
After sheating him
for Tuesday at 11 mm.
་་
22.10.1948.