CO537-(1262-1649) — Page 897

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CO 537/1649

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restrictions Further information is given in the enclosed 'Terms and Conditions of supply of National Archives' leaflet

Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

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CO 537/1649 restrictions Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

memorandum which it seems to me it is desirable

to make in sending the memorandum to Sir Mark Young.

The draft characterises as the two main

issues:-

(a)

the extent, if any, to which we should be prepared to make concessions to the Chinese in, respect of our tenure of Hong Kong itself and the New Territories;

(b) whether we should make an offer of any such concessions now or wait until the matter is raised by the Chinese Government.

ame the vigum

I think there is no doubt that that t theya temos fall to be considered in that order. In this connection, my own preliminary view is that insufficient weight has been given in the memorandum to the arguments against making any concession. But it might prove to be in the interests of Hong Kong to agree to the termination of the New Territories lease if we could secure

a re-drawing of the boundaries of Kowloon so as to bring the whole of the built-up area within the boundaries of the Colony and, of course, the necessary control in respect of undertakings in the New Territories. I propose that after the letter has gone to Sir Mark Young, a note should be drawn up setting out the considered views of the Department on the Foreign Office memorandum.

I have ander

4mangler

6.5.46.

drags to

A Bevin for the S.gs.

Sir G. Gater.

There is no doubt that we shall be under considerable pressure from the Chungking Government, within foreseeable time, over this issue of the retrocession of at least part of the territory now making up the Colony of Hong Kong. The Foreign Office memorandum seems to me to be on the whole a quite reasonable and balanced presentation of the arguments both for and against the offering of concessions over the territor issue. There is also a section at the end about the complicated question of customs control.

The Foreign Office proposal that we should take the initiative and should make one of the two offers summarised in paragraphs 40 and 41 of the memorandum at least deserves, careful and sympathetic consideration. I agree that the first step should be to seek the views of Sir M. Young just as the Foreign Office are seeking those of Sir Horace Seymour and the draft now submitted of a letter to

the