CO537-3705 — Page 66

FROM

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

101

Cyphor (0.T.P.)

IMMEDIATS

TO HONG KONG (Sir A. Grantham)

Cent 30th January, 1948, 12.45 hrs.

No. 147 Regret,

49=EZETOR 2015

Addressed Gov., Hong Kong,

Repeated British Ambassador Nanking,

(31)

(83)

83)

(81)

Kowloon Incident.

Proposela in paragraphs 5, 6 and 7 of your telegram No. 67 fox seizing present opportunity to take initiative with Chinese Government have been very carefully considered here and the following conclusions reached :--

(a)

(b)

(c)

that assurancee which have been given by Chinone Minister for Foreign Affairs, in response to our Ambassador'e representatione, that ingtructions ware to be sent to "National Times" to maintain "en unprovocativo attitude" should be accepted, and that the paper should be judged on its future behaviour and no further action taken at the moment:

that in the absence of sny evidenos to implicate Kuqintang we cannot ask for their withdrawal and that of Sen Win Chu I Youth Corps particularly while rafugee pucaonalities and organisations within the Golony opposed to the Chinese Government are free to continue their activitios:

that regularisation of position of Chinese representa tiw Se not at present of major importance Binge Chinese Government in concluding recent Customs Agreemont an have already acknowledged British sovereignty over

Chia metter should be considered at loigure

and on ita morite,

Conclusion on (c) ie however subject to consideration of proposal put forward by Consul-General, Canton, in your telegram No. 109 as amended by your unnumbered telegram of 27th January which, if adopted, would presumably involve Kwok's formal appointment as Coneul-General.

Need For action to demonstrate locally that His Majesty's Government intend to stand flem in this matter is fully appreciated hero, I think you will find evidence of that in the note sent to the Chinese Ambassador here, text of which is in Foreign Office telegram to Nanking No. GlĄ repeated to Hong Kong. As you are aware text of this note has been desued to preso as countor-blast to statemente insued by Central News Agency.

3.

But as you will appreciate, your suggestions had to be considered among other things in the light of the implications of the general foreign policy announced in the House of Commone last week, which make it deatrable to avoid at the moment any motion likely to weaken the present Chinese

/Government