54145/16.

5 LA 24th January, 1940.

(1)

Dear inna,

You will recall that Spicer wrote to you on the 14th January about a telegram which the Chancellor of the Exchequer had received from lianlihwu of Nanking and asking for our comments upon it, and that watson replied to

(2) Spicer on the 20th January and seat a note on the wvictions

from Kowloon.

Spicer has now written to us again and I am

(3) enclosing a leer of his letter of the 22nd January.

It was necessary for us to seek some elucidation of this and I understand now that what Spicer desires is a suitable draft answer to Hanlihwu, which the Chancellor might send through our bassador in China. Since diplomatic channels are to be used for conveying the reply, and as the Chancellor's letter will be sent to a Chinese in China, and as i understand that the foreign office has been put in possession of all the facts about the Hong Kong side of thi affair, I have suggested to the Chancellor's private secretary, who has agreed, that the draft reply should now be prepared in your office for concurrence by us. I hope that this will be agreeable to you.

Yours sincerely,

(Skd) D.M. SMITH.

Private Lecretary.

P.F. Minna, 381., V. B. 7.

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