CO537-3705 — Page 242

3.

Chinese Minister also put yard

very tentatively and as his own

sonal

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 under-

stood that he had not the authority of the

Ambassador or the Chinese Government for making

this suggestion.

4. 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.

6.

I should also be grateful for a

report on the state of feeling in Hong Kong

concerning this matter.

C

Secar

2 marked to WAL. Sert

Copies sent & F.O. for the men & Narling)

to

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