CO537-3705 — Page 239

༄- E-4---PA8༩ ས༞ -

Gyrban{0.T.P.)

OUTWARD TELEGRAM

TO HONG KONG(Sir A. Grantham)

Sent 16th January, 1948. 20.20 hrs.

No. 74 Secret

Axdressed to Gov. Hong Kong. - Repeated to H.M. Ambassador, Nanking.

23

17

1

22.

1.

Kowloon evictions.

Your telegram No.65 and previous telegrams.

I am most grateful to you for keeping me so fully and promptly informed of developments.

2.

You will have seen Foreign Office telegram to Nanking No.30 repeated to Hong Kong as No.90, giving account of inter- view with Chinese Minister in London on 13th January, Chinese Ambassador called at Foreign Office on 14th January to make further representations. Chinese Minister also made a further call on the 15th January in the course of which he put forward request that no police should be stationed in Kowloon and that the two men referred to in Your telegram No.54 should be released pending settlement of dispute over Walled City of Kowloon. Minister was informed that request would be passed on but was given no encouragement to think that it would be possible for Hong Kong Government to interfere with the law,

3. Chinese Minister also put forward very tentatively and as his own personal suggestion proposal that area of Walled City should be made available to Chinese Government as a site for Chinese maritime customs under the recent Customs Agreement. Chinese Minister was anxious that it should be clearly understood. that he had not the authority of the Ambassador or the Chinese Government for making this suggestion.

I have received with much regret news in your telegram No.63 of burning of Consulate-General. Foreign Office will no doubt be taking this matter up with Ambassador here. It seems to indicate however that the situation may be getting beyond control of Chinese Government. I entirely support the action which you have taken in this matter. At the same time you will no doubt bear in mind the need to avoid as far as possible any further immediate action which might aggravate the difficult position which has arisen.

5. I should be grateful for your comments on the request of the Chinese Minister in paragraph 2 and on the suggestion in paragraph 3. I do not know whether the site would be suitable as a Customs Station, but the suggestion might be considered in the light of paragraph 5 of Nanking telegram No.48 repeated to you.

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