CO537-3705 — Page 69

2

4.

Conclusion on (c) is however subject to

consideration of proposal put forward by Consul-

General, Canton, in your telegram No.109 which,

if adopted, would presumably involve Kwok's

formal appointment as Consul-General.

2. Need for action to demonstrate locally

that H.M.G. intend to stand firm in this matter

is fully appreciated here. 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.64

Вит

are

repeated to Hong Kong. Pereign Office have also Aware proposed subject to agreement of Ainbassador

(telegram No.65 to Nanking also repeated to

Mis

Hong Kong) to release text ofynote to press as

counter-blast to statements issued by Central

News Agency.

as

Amended

Your humuussed

bergram of

29 January

(85)

has been

ISSUED

to

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 Commons last

week, which make it desirable to avoid at the

moment any action likely to weaken the present

Chinese Government internally. In all the cirum-

stances conclusions in paragraph one seem to be

right, but if despite the importance of the

above general policy factor and the reasons

for the conclusions indicated in paragraph one,

you still feel that the local situation demands

some action, I shall of course be very ready to

consider the matter further.

4.

Obviously it is most important to

achieve a solution of the Chinese claim to

jurisdiction within the Walled City which will

prevent this claim being used as a pretext for

further