*
Mr. J.C. MORGAN
DRAFT
(Copy on 94001/28)
Original at No 38 ow
94001/18/48
10
Note of meeting held in Mr. Rees-Williams
room at 3.30 p.m. on 20th December, 1948, to
discuss situation in Hong Kong and Far East
generally.
Present:- Mr. Rees-Williams (in the Chair)
Sir Thomas Lloyd
1.
Sir Charles Jeffries
Mr. Paskin
Mr. Sidebotham
Mr. Trafford Smith
Mr. Higham
Mr. W.I.J. Wallace
Mr. Morgan.
Attention was drawn to the present stage
of H.M.G's policy in China as revealed in the
recent Cabinet minutes: this policy was
largely a matter of foreign affairs although
it had anstraining impact on Hong Kong and the
Far Eastern dependencies. For the present the
Colonial Office at least can only "wait ar
see" the trend of events in China.
2.
One important question was whether if
when the Communists at up administration
should
Nanking we
maintain
when
with them
British agent
the Ambassador moves wit
the Kuomintang Government to Canton. The
policy is that "de facto" recognition will
to be given to the Communists. This reinfor
the Government decision that the Governor
Hong Kong must continue to maintain a polic
strict neutrality as between the Communistee
Kuomintang. On the other hand this policy
can only remain valid while there remains in
China a balance between Kuomintang and Com
in making plans we have to consider the won
case viz: complete Communist domination such
as well as north of the Yangtze River.