54145/4/50.

&

SECRET

PERSONAL

Colonial Office,

2

Thẹ Charch House,

Treat Smith Street,

London, S.W.1.

14th August, 1950.

See 43

You will be aware of the revised proposals for constitutional reform in Hong Kong which Grantham brought with him in sketch form. Since he has been back here the whole matter has been discussed exhaustively with him, both by ourselves and by Ministers. When (Pantham saw the

Secretary of State a few weeks ago, the question was raised whether, in view of all that has happened in the Far East since last August, it is still "opportune" to be considering proposals for constitutional development in Hong Kong. On this, Grantham's view was that it is very desirable that something (1.e. the "open" despatch of the 25th August and the Secretary of State's reply) should be published in liong Kong fairly soon, in order to avoid giving a handle for agitation by left wing opinion. That/wolfïa, of course, have to be reconsidered if the situation in the Far East · should deteriorate, in possible directions of which both you and we are painfully conscious.

2. As regards the proposals themselves the conclusion has been reached that subject to certain amendments which I mention below, the revised version which Grantham brought home with him is a good deal more satisfactory, having regard to the present situation in the Far East, than that submitted last August. But since the proposals submitted Last year were, in general, in accord with H.M.G's policy for constitutional advancement in the colonies, the Secretary of State saw serious difficulties in coming out with any open despatch which could be interpreted as rejecting them

J.F. Nicoll, Esq., C.M.G.

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