CO537-2187 — Page 104

No. 3/0 513 (8276/1077/47)

CONFIDENTIAL

54145

BRITISH EMBASSY,

NANKING,

24th June, 1947.

VED

30 JUL 1947

O.. REGY.

My Portuguese colleague came to see me today to discuss the position in regard to Macao and Hong Kong.

The immediate cause of his visit was the recent tub-thumping statement by the Portuguese Minister for the Colonies about blood flowing in the defence of Portuguese colonial integrity. In the first version of this statement to reach China it appeared as though it applied solely to Macao. A later version however showed that the Minister for the Colonies was referring to Portuguese colonial territories all over the world.

My Portuguese colleague and I the following points:-

were in agreement on

(1) There are no signs at present that the Chinese Government desire to raise the question of the return of Hong Kong and Macao though they have no objection to the ultra- nationalists of the Kuo Min Tang keeping the pot warm by periodical outbursts.

(2) In view of this attitude there is advantage at present in both His Majesty's Government and the Portuguese Government refraining from forcing the issue by public statements of their determination to retain the territories in question. (N.B. In this connexion M. Fereira da Fonseca, insisted that he must on no account be regarded as criticising the statement by the Portuguese Minister of the Colonies about which he had had no information from Lisbon.)

position

(3) Any such statements made about Macao affect the of Hong Kong and vice versa.

(4) In these circumstances it would be of advantage from a local standpoint if His Majesty's Government and the Portuguese Government could exchange views before any such public statements are made.

All this may of course savour of grandmothers and eggs and it may be that we have already exchanged views with the Portuguese Government. Nevertheless I thought it best to salve my conscience by putting the foregoing opinions on record. I am fully aware of the disadvantages from Hong Kong's point of view of a continuance of the present uncertain situation. But I still think that, having regard to the present Chinese attitude and the likelihood that it will continue to prevail as long as China remains weak internally, it would be better, so far as can be foreseen at the moment, not to force the issue.

(signed) RALEH SKRIND STEVENDCH

Kitson, Esq., C.B.34,

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