CO537-3705 — Page 95

(c)

that regularisation of position of

Chinese representative is not at

present of major importance since

Chinese Government in concluding

recent Customs Agreement have already

acknowledged British sovereignty

over Hong Kong. This matter should

be considered at leisure and on its

merits.

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. tabail bu gred to bare jour views

(63))

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

repeated to Hong Kong. Foreign Office have

also proposed subject to agreement of Ambassador

(telegram No.65 to Nanking also repeated to

Hong Kong) to release text of note to press as

counter-blast to statements issued by Central

News Agency.

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

monent any action likely to weaken the present

nese Government internally. In all the circum-

ces conclusions in paragraph one seem to be

X

a

Contantelor to to

haliment's true. by Chinese

Centine Des

Azemey

right,

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