CO537-2187 — Page 106

No. 8/0 355 (6!76/1077/47)

CONFIDENTIAL

BRITISH EMBASSY,

NANKING,

20th May, 1947.

My dear George,

Thank you for

your letter (3155/117/802) of 2nd May about the Chinese claim to sovereignty over Macao made during the recent negotiations for an Air Transport Agreement.

When the Chinese representatives put forward this claim our delegation made it quite clear that His Majesty's Government could not be expected to accept it, and it is unlikely that there was any misunderstanding on the part of the Chinese on the point. I do not think that our position regarding Hong Kong has been in any way prejudiced during the course of the conversations, and as a matter of fact the actual documents tend to show if anything that we do not recognise the Chinese claim; there is certainly nothing in them to suggest that we do recognise it.

I therefore agree with your view that for us to enter any caveat on the point with the Chinese Government would not only serve no useful purpose but might well stir up a lot of mud, create suspicion and perhaps endanger the loss of whatever goodwill may be necessary to get the Agreement (if it is approved by His Majesty's Government) through the Executive Yuan.

I do not even think it essential to mention the matter to my Portuguese colleague (who might find the point rather hard to take!), though if a suitable opportunity should offer I might say something to show him that we have not let ortugal down in the matter.

Yours

ever

(signed) RAL/H SKRINE STEVENSON

G.V. Kitson, Esquire, C.B.E.,

China Department,

Foreign Office,

London, S..1.