[456B) Wt. 32483/800 100m. 11/48 C.N.Ld. 748
0.
¡Mr.Anderson
Mr. Hall
7. £/s.
Mr.
Mr.
Mr.
DRAFT.
N. C. C. Trench, Esq.,
F.0.
53627/50
Fermt. U.S. of S.
Parly. U.S. S.
Minister of State
Secretary of State
Your Reference FC 1371/19
F.O. Conse
see men
For Mr. Hall's signature.
SECRET
[see Mr. Hall's min.
of 23/117
Copy of (33)
(30)
(31)
(33)
Copy of draft saving. herewith
(copy on 54166)
FURTHER ACTION.
Copy on 54166/50 (without
enclosures)
You will remember that I spoke with you on the
23rd November, 1950, about Hong Kong telegram No.
1277 of the 21st November, about the negotiations
with the Chinese taking place in Canton on goods
traffic on the Kowloon-Canton Railway. We agreed
on our reply to Hong Kong authorizing the Governor
to proceed as he suggested in paragraph 5 of his
telegram. (See our telegram No. 1753 to Hong Kong).
I now enclose a copy of Hong Kong Saving No.
184 Secret, of the 22nd December, 1950, which explains
more fully the factors affecting the Governor's
decision to continue the negotiations for a Working
Agreement. The main point made is the one which we
had already noted before replying to Hong Kong
that in view of Article 9 of the 1948 Customs Agreement
we are in a position to maintain if necessary that
railway arrangements have always been and should be
now the subject of separate ad hoc agreements and
that the facilities now contemplated at Kowloon do
not in consequence involve any of the provisions of
the 1948 Customs Agreement.
We agree with the Governor's reasoning and see
no objection to the text of the relevant passage in
the draft Agreement (in paragraph 5 of the
Governor's savingram). Subject to any comments you
/may