CO537-3705 — Page 173

INWARD TELEGRAM.

TO THE SECRETARY OF STATE FOR THE COLONIES.

This document must be paraphrased 17 the communication of its contenta to any person outside Government Service de authorised.

Cypher

FROM HONG KONG (Sir A. Granthan)

D.21st January, 1948, K. 21st

*

10.40 hre

Connet 7o.

IMPORTANT

No. 80 Top Searet.

(31)

Addresaad S. of S.

Repeated to British Ambasador, Nanking No. 26.

Reference my talegram No. 67 of 17th January,

I am whenay over aigns that responsible and modersta Chiuses in Hong Kong are increasingly disposed to measure his Majesty's Government's ultimate intention regarding the sovereignty of Hong Kong by the attitude adoptad tovarde, and settlement of the emergency in respect of Canton and Kowloon City incidents.

Absence of a simple official settlement about the future of Hong Kong in reply to the skilful and effective Campaign of suggestion carried out by China da recent montha has left doubs in many mindz whether we really intend to remain in Luna Korea These doubts are nurtured by the growing boldness of Chinese Bctivity in Hong Kong such as the recent visita of the Po On Magistrats and other official Keantung representatives to Kowloon City squattere, contemptuous malicious parmeation of most of the looal vernacular press and the ogniool ease with Whlch Okiness propaganda la sole firet to manufacture and then at will to fen an endless succes#ion of incidente.

3.

Current negotiations between His Majesty's Government and Nanking regarding Kowloon Olty and Genton incidente are now locally regarded by the bulk of moderate Chinees opinion sa a teat case of our real intentions,

R.240

Secretary of State

Sir T. Lloyd

Mr. Rees-1111ame

810 8. 08±ns

813 0. Jeffries

Mr. Holding Foreign Office

Mr. Beel

Mayle

W. W.I.J, WallasS

Mr. Bearlott

Mr. Wadford.

Mr. AcTio Scott.