OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

Cypher (0.T.F.)

TO HONG KONG (Sir A. Grantham)

Sent 8th May, 1950. 15.30 hrs.

RECEIVED

9 MAY 1950 COLONIAL OFFICE

No. 696.

Confidential.

Following from Peking addressed to Foreign Office No. 468 of 4th May repeated to Hong Kong No. 75. Bagins.

Hong Kong telegram No. 464 to Colonial Office.

8

Kowloon Canton railway.

wak

5362750

Unless Hong Kong sees serious objection, I venture to suggest that invitation might now be renewed informally with the suggestion of alternative of meeting in Canton if that would be more convenient for the Chinese.

March figures for Hong Kong and South China trade, though less than those for Hong Kong trade with North and Central China and though presumably including Swatow and Amoy as well as reiver traffic, seem to indicate that increased rail facilities might substantially alleviate the economic effects of coastal blockade. It seems a pity that we should miss the possibility that a forthcoming attitude on our part in this matter might engender goodwill, though I realise that it is usually more advantageous to bargain on one's own ground without betraying eagerness.

Circulated to:

Secretary of State Mr. T.F. Cook Mr. Gorell Barnes Mr. Galsworthy Colonial Attache Accounts Branch Mr. Sidebotham Mr. Anderson.

Mr. Webber

Sir G. Jeffries Mr. Eastwood Mr. Bennett Mr Bigg Rm. 445

Mr

Paskin

Ends.

Sir T. Lloyd

Sir H. Poynton

Mr A.R. Thomas

Brig. Johnson Mr. Davies Rm. 440

Mr Hall

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