CO537-2192 — Page 44

2.

Sir Mark Young's recommendations have been

carefully studied in conjunction with the Foreign Office,

and account has been taken of the views expressed by

His Majesty's Ambassador in Nanking in the latter's

despatch to the Secretary of State for Foreign Affairs,

No.214, repeated to Hong Kong by safe hand as No.124,

of the 12th June, 1947. As a result of that study,

I agree with the view that no substantial advantage

would be gained by an attempt to secure the subordination

of the local Head of the Kuomintang in Hong Kong to

the diplomatic representative of the Chinese Government

in the Colony. As regards the longer term objective

proposed by Sir Mark Young, however, I am advised

that, whatever may be the theoretical position in

regard to the termination of one-party government in

China, in fact and for all practical purposes the

Kuomintang is still the Government party; and

consequently that any such drastic action as their

expulsion from Hong Kong would almost certainly lead

to retaliatory measures against Hong Kong by the Chinese

Government. There is also the danger that such action

might have repercussions elsewhere.

3.

(26)

At the same time I am advised that, should

there be a deterioration in the internal situation in

China leading to a serious weakening of the authority of

the Nanking Government, or even to its complete disintegration,

then it is quite possible that in these circumstances the

expulsion of the Kuomintang from Hong Kong could be effected

That

which would be without the serious risk of retaliation that i

wincurred if

Lak

considered would exist were such drastic action/to be

taken whilst the Kuomintang enjoys de facto its present

privileged status in China.

4.

In these circumstances, whilst I fully appreciate

the extreme embarrassment which the activities of the

Kuomintang have caused, and are continuing to create,

for