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3. Mr. Mayle wrote to r. HocDougall in mid-April, enclosing a copy of the draft Cabinot paper and explaining the stage which it had reached. Mr. MacDougall's reply, early in May, stated that most people in Hong Kong stili conceive a clear statement to be desirable and essential.

4. Early in May the Secretary of State had a discussion with Mr. Bevin, at which it was decided not to proceed, for the time being, with the submission of the paper to the Cabinet. The Secretary of Stato minuted on his conversation as follows:-

"For the moment we cannot make progress with the paper I fear. I have spoken to the Foreign Secretary and told him the difficulties of "no declaration" from our angle. But he has real difficulties and it would be politie not to try to persuade him to do something which would make now problems for him. Ho 10 avare of the urgency of our own position but would urge us to press on as far as vo can. He did not seem to have in his mind any prospect of future change of status of Hong Kong. I will keep the matter before him,

but pending a decision, if there is any matter of urgency which cannot be proceeded with, I would like the Department to see me."

21st June, 1947.