[This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on]

Cypher/OTP

DEPARTMENTAL DISTRIBUTION

FROM NANKING TO FOREIGN OFFICE

Sir R. Stevenson

No. 787

D. 9.55 a.m. 27th September, 1948. 27th September, 1948. R. 12.20 p.m. 27th September, 1948.

SECRET

Your telegram No. 701.

Canton Incident.

Further representations on the lines approved in your telegram No. 589 were made in a letter to the Minister for Foreign Affairs on September 15th copied to the Foreign Office in my despatch No. 743 in which I also informed him of the reduction of the amount for rebuilding the Consulate General premises according to the revised Ministry of Works estimates.

2. No written reply has been so far recevied either to this communication or to His Majesty's Ambassador's note to the Minister for Foreign Affairs of July 15th.

3. I made similar approach to the Vice-Minister for Foreign Affairs George Yeh orally September 24th. He made it clear in reply that no progress could be expected as the Minister for Foreign Affairs regarded this as his personal affair and had instructed both the Vice-Ministers for Foreign Affairs not (repeat not) to commit themselves if His Majesty's Embassy happened to bring the matter up during his absence, The Vice-Minister for Foreign Affairs who rather unconvincingly pret ended ignorance of the conversation described in paragraph 4 of His Majesty's Ambassador's telegram No. 609 also volunteered comment that the President Chiang Kai-Shek had no authority to intervene in a matter of this sort.

4. It is obvious from the above unsatisfactory results of my interview that the Minister for Foreign Affairs will in fact try and insist on linking up compensation for this case. with the Kowloon incident in respect to which he would obviously like to gain credit for a diplomatic victory.

5. I therefore venture to submit that you might feel disposed to raise the matter with Wang Shih Chieh in person at a convenient opportunity.

6. If so the question of the possible use of publicity could be left temporarily in obeyance.

/7. Vice-Minister for

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