RECEIVED

12 JUL 1948

WSGY.

[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. 561.

D. 10.16 a.m. 7th July, 1948.

R. 11.58 a.m. 7th July, 1948.

262

(249/50)

PT. TIL

(253)

6th July, 1948.

Repeated to Hong Kong. SECRET

Addressed to Foreign Office telegram No. 561 of 6th July, repeated for information to Hong Kong.

Colonial Office telegram No. 691 to Hong Kong. Kowloon City.

I share unfavourable opinion expressed in Hong Kong telegram No. 606 to the Secretary of State for Colonies regarding this Chinese proposal, which if anything emphasises the contrast of jurisdiction as well as intro- ducing a national rather than sentimental factor by suggesting that name Chung Shan for the Garden of Rememberance,

2. At the same time I doubt the wisdom of reference to International arbitration unless we are confident of the strength of our case, lest a decision against us should encourage the Chinese to create other. difficulties later on. Loss of prestige from an adverse ruling by such a tribunal must also be a serious consideration.

3. In the circumstances I still adhere to my preference for alternative of using grounds for official quarters of Chinese representatives on terms outlined in

(73) paragraph 4 of my telegram No. 181 of February 20th. This

would place the onus for not abusing letter and spirit

पि

Br. I

of agreement squarely and [grp. undec. ? publicly] upon the shoulders of the Chinese Government themselves.

Moreover

if we could succeed in inserting into the agreement some reference to the usual immunities granted to foreign consular representatives or premises it would serve to stress consular status of the..Chinese officials concerned. might thus also be possible to evade the need to include It any specific provisions relating to jurisdiction, in which event the Chinese occupants would seem to have no practical alternative but to hand over malefactors on these premises to Hong Kong. police. I would add as a minor consideration, that the area in question is not easily accessible as well as not being very healthy so that [grps. undec.] dwelling upon this site should not prove to be very pleasant to the Chinese officials concerned. It would therefore be desirable to insert some clause to place upon the Chinese Government the obligation to commenče building at an early date.

Foreign Office please pass to Hong Kong as my telegram 212.

[Copies sent to Telegraph Section Colonial Office for re- transmission to Hong Kong].

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