CO537-(1262-1649) — Page 959

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ANNEXURE II

ested should

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CITIS

Ref.:

CO 537/1649

THE NATIONAL ARCHIVES

N

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

00061

cms

Ref.:

CO 537/1649

THE NATIONAL ARCHIVES

2

It may be subject to copyright

restrictions. Further information is given in the enclosed Terms and Conditions of supply of

Please note that this copy is supplied subject to the National Archives' terms and conditions and that younal Archives' leaflet.

ANNEXURE III

(Memorandun by Sir Horace Seymour)

The Generalissimo and Madame Chiang entertained my wife and myself at a farewell luncheon today. After luncheon I had a talk with His Excellency, at which the Minister for Foreign Affairs and Dr. Wellington Koo were present.

2. After I had raised the question of visits by His Majesty's ships to Chinese ports (recorded separately) the Generalissimo spoke of Sino-British relations in general, saying that they had much improved in the last few years. He agreed that, in the main political questions now before the World's statesmon, Chinese and British interests were very similar. But he thought that China's relations with Britain would not be so satisfactory, or conducted with such mutual confidence as her relations with the United States so long is the question of Hong Kong remained without some solution. It would, he said, not be difficult to find a solution under which the material interests of all concerned would be safeguarded. The question was to some extent a psychological one, and public confidence in British policy would not be fully established unless a solution could be found. As an illustration His Excellency mentioned the recent repeal of the American exclusion acts affecting Chinese immigration to the United States: the practical effect was very small indcod: the moral effect had been very satisfactory.

3. The Generalissimo mentionca incidentally that in the discussions with the Soviet Government over Port Arthur and Dairen the Russians had argued that as the Chinese allowed the British to stay in Hong Kong they could hardly object to the presence of the Russians further north. His Excellency added that this argument was in fact not of any particular importance, but he mentioned it because it had been put forward on the Russian side.

4. In conclusion the Generalissimo asked me to let

His Majesty's Govern ent know, on my return to England, of his views on this matter, and of the importance which he attached to it as a means of promoting those cordial relations between China and the United Kingdom which it was his wish to see.

5. As I know from recent correspondence that His Majesty's Government have not yet decided upon their future policy in regard to Hong Kong I did not enquire further into the Generalissimo's views (which are probably not very definite as yet) beyond confirming that I had correctly understood that he contemplated some arrangement under which our material interests would be safoguarded.. I promised, of course, to convey to the Secretary of State for Foreign Affairs what he had said to me.

6.