CO537-3706 — Page 111

Wt. 23364/665. 8/47. 50,000. S. & S. Ltd.

54145/16/48

186

0.

Mr. Mayle

5/3/48

LJ. Macann 6/9/48

Jove

Mr..

Mr.

Mr..

تمان 413

Permt. U.S. of S.

Parly. U.S. S:

Secretary of State:

Your Reference...

DRAFT.CYPHER TELEGRAM

IMMEDIATE

No..

•

Secret.

FOR FOREIGN OFFICE

CONCURRENCE.

GOVERNOR,

HONG KONG.

(184) (185)

FURTHER ACTION.

Kowloon City.

You have presumably received your

copies of Nanking telegrams Nos. 229 and 231.

2.

It seems quite clear from latter

telegram that nothing short of actual

exercise of jurisdiction will be acceptable

to Chinese. In these circumstances, if it

were decided, in spite of the Chinese

uncompromising attitude, to make a further

effort and put forward the Consulate compound

idea, the Chinese are not likely to give us

assurance for which we should have to ask

namely that they would not claim that such

a solution was an admission of their claim to

jurisdiction and right to exercise it.

Subject to your agreement it is not therefore

proposed to put forward the proposal for a

Consulate compound.

3.

The alternative courses open to us

seem to be (a) to leave things as they are,

(b) to proceed with the proposal for a park,

(c) to proceed with the proposal for a

Garden of Remembrance.

4.

There is a further question which

arises, whichever of the above alternatives

is adopted, namely whether we should indicate

to