INWARD TELEGRAM

See

271

amended spy

TO THE SECRETARY OF STATE FOR THE COLONIES

>Cypher (0.T.P.) COPY FOR REGISTRATION

FRAL HONG KONG (Stx A. Grantham)

D. 27th July, 1946. R. 27th

08.40 hrs.

27 JUL 043

?

INMEDIATE

Secret.

Addressed to 3. of 9,

RECEIVED 28 JUL 1948

Repeated to British Ambassador, GIOMPRÉGY:

(267). Your telegram

(262).

offies.

No.759.

40 Repeal

T. Ky.

British Ambassador's telegram No.561 to the Foreim

Kowloon City.

I have discussed with the British Jubageador end et his request I elaboratod reasons why I consider arbitration, even if unfavourable, better than Consulate compound.

2. My main reason is that responsible Hong Kong Chinese opinion is interested in thie se a toat cese of the pulley of HM. Government on the question of future of Hong Kong.

end want to continue to be, on or side but 12 they get the impression that H.M. Government in not

repeat not) serious about retaining Hong Kong as a whole,

818

they might win their sells.

3. They consider H.M. Government and Bong Kong Gerermacni are in the right over the Kowloon City dispute, It therefore we hand over Kowloon City to the Chinese for use ac Consulate, they will regard this as a gratuitom sign of weakness and an ladication that our polley vis-a-vis Chiness on the question of Hong Kong will be weak. Reference to Duternational. Court of Kowloon City moreover would not (repeat not) be interpreted as sign of weakness on our part,

As to whether Kowloon City as an enclave of Chinese territory (it (group omitted arbitration) went against ua), would be less or move inconvenient to us than Jonsulete compound with diplomatic privileges, 16 to impossible to say with certainty. Un balance, I imeline to the view that the Consulate would be wore objectionable since we should know less preciosly where ve stood. and where there is any unertainty (hinese would continually exploit the position our dieBdvantage.

3*

There is further point that one of the conditions of heading over the tree as e Consulate would be that the Consulate building would be erested within certain time. Chinose Government would continuously stall this, Having won their main peint 1.0. got us to have orez Kowloon City. to then, there would be no indusement to them to carry out their side of the bargain by building the Gumulate. Once again we should be shown up as having been out-smarted by the Chinese, apart from other (wo corrupt groups). Furthermore, 1.W. Brok or his successor would dislike intensely the idea of living and working in such an Laconvenient. ead unattractive nad ghborhood, us Kowloon City. He would, therefore, hinder implementation of this part of tw agesepeut.

25.

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