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CO 537/1649

THE NATIONAL ARCHIVES

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

00034

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MR. LLOYD.

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After our meeting with the Foreign Office on the 5th November (note at (52)), Miss Ruston and I revised the Joint Memorandum, and I sent this Revise (copy at No. (54) headed First Revise) to Mr. Kitson on the 8th November (55). I also sent a copy to Mr. Caine (57) who sent me his comments at (58).

2. I discussed Mr. Caine's comments with him, and as the result I have made amendments in the draft paper to meet all the points with the exception of C. (II). On this point Mr. Caine agreed with me that it would be difficult to sort the various factors into specific categories, especially as some of them would belong to two or more categories. I explained to Mr. Caine that I had attempted some logical order by putting first the factors which seemed to me to support what might perhaps be called the Chinese case, then the neutral factor (Defence) and then the factors supporting the British case.

3. I have also made the amendments suggested in Mr. Kitson's letter at (59) with the exception of those in paragraph 5, and included the draft paragraph suggested by the Foreign Office, with an addition at the beginning mentioning the desirability of a clear under- standing with the Chinese before any discussions open -

4.

(a) that the status of Hong Kong excluding the

new Territories would be execluded from the discussions;

(b) that any agreement reached as the result of

the discussions should be regarded as the final settlement of the so-called Hong Kong problem.

Unless the Foreign Office press strongly for

the omission of the passages referred to in paragraph 5 of Mr. Kitson's letter, I think they should be retained.

5. A re-draft of the paper (headed Second Revise incorporating all the above amendments is at No. (60). Subject to any comments you may have, I propose to send this Revise to Mr. Kitson of the Foreign Office with the necessary explanations, suggesting that unless the Foreign Office have any points of substance on the Revise, it might now be sent together with the annexures to the Secretary of the Far East (official) Committee duplication and distribution, with a view to a meeting being arranged early next month.

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Since dictating the above minute, I have received the documents registered on this file as Nos.61 and 62. I propose to make the addition which the Chiefs of Staff have suggested (paragraph 2 of 62) and I am clearing with the Cabinet Office exactly what is meant by paragraphs 3 and 4 of the letter.

The Governor's telegram (No.61) puts us in some slight difficulty as the point which the

Governor

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