8

9

Cypher/OTP

Mr. Hutchison

No. 468

4th May, 1950

CONFIDENTIAL

DEPARTMENTAL DISTRIBUTION

FROM PEKING TO FOREIGN OFFICE

D. 6.11 p.m. 6th May, 1950

R. 7.34 p.m. 6th May, 1950

Addressed to Foreign Office telegram No. 468 of 4th May. Repeated for information to Hong Kong.

Hong Kong telegram No. 464 to Colonial Office.

Kowloon

Canton railway.

53627/80

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.

2. 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 river 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 forth- coming 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.

Foreign Office please pass to Hong Kong as my telegram No. 75.

[Copies sent to Colonial Office for repetition to Hong Kong]

DISTRIBUTED TO:-

Far Eastern Department

Economic Relations Department

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