CO537-1658 — Page 19

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and who would work in proper subordination to the

diplomatic representative of the Chinese Government.

We have told the Governor within the past day

or so that, after consultation with the Foreign Office,

we feel that representations to the Chinese Government

on the question of regularizing the position of their

representative should be deferred for the time being

since it might precipitate the question of the future

of Hong Kong being raised. It would seem equally

inopportune to raise the question of the Kuomintang

representative.

The general populace, though probably luke-warm

towards the Kuomintang, have no wish to antagonize

its officials, Their position is that described by

the Governor in connection with proposals for a new

constitution. So long as there is doubt in the minds

of the local Chinese as to whether or not Hong Kong

may be returned to China, so long it seems will the

majority refuse to take any action which might

prejudice their position with the Chinese authorities;

Mr. Mayle, Mr. Lloyd and International Relations

Department will wish to see. Mr. Man may also care to

see.

dvert

The Governor does not ask,for any action to be

taken but I suggest that the file might be brought up

at monthly intervals for consideration as to whether

the time is ripe for anything to be done about the

recommendation at the bottom of page 7; In the

meantime the Ambassador may make some comments.

4. but

21.12.46.