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Cypher/CTP

DEPARTMENTAL DISTRIBUTION,

FROM NANKING TO FOREIGN OFFICE.

Sir R. Stevenson. No. 597.

19th July, 1948.

D. 7.58 a.m. 19th July, 1948.

R. 9.14 a.m. 19th July, 1948.

Repeated to Hong Kong and Canton.

IMPORTANT.

CONFIDENTIAL.

LIGHT

Addressed to Foreign Office telegram No. 597 of 19th July, repeated for information to Hong Kong and Canton.

My telegram No. 561 of July 6th (not to Canton). (Canton Outrage).

I raised with Minister for Foreign Affairs in my conversation with him on June [sic] 17th the question of payment of compensation, reminding him that we had communi- cated a round figure total of claims some time ago.

2. In reply he told me flatly that the Chinese Government could not see their way to proceeding with this matter in advance of a settlement of the Kowloon City case. I said that I regretted this attitude and hoped that it did not mean that Chinese Government sought to link these two cases together and thus to justify Canton outrage which was unjustifiable on any grounds. In reply he confined himself to saying how much Chinese Government and he personally regretted the outrage, but spoiled the effect of what he had said by maintaining that it was due to action of a mob that got out of control despite efforts of Chinese police, whereas firing on the crowd at Kowloon had been done by Hong Kong police themselves. I took him up sharply over this, and said that he knew as well as I did that the crowd had not been fired on, that the police under great pressure had fired into the ground and that one man some distance away had been accidently injured by a richochet. repeated my regrets at the attitude of the Chinese Government over the compensation for Canton outrage and said that all I could do in the circumstances was to inform you of it.

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3. Although the Minister for Foreign Affair's statement merely confirms what we foresaw would be the Chinese attitude, I think that His Majesty's Government would be justified in taking a serious view of it, propose however to raise it with President Chiang when I take leave of him on 20th July and will telegraph again on the subject.

Foreign Office please pass to Hong Kong as my telegram No. 220.

[Copies sent to Telegram Section Colonial Office for transmission to Hong Kong].

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