CO537-3706 — Page 146

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draft statement to the Chinese Government on the basis of our compromise proposal, but we should now have to think again and all this would take time..It would take even more time if we ́were driven back to argue all the pros and cons all over again.

4. Minister asserted that he felt.sure that his Foreign Minister still desired to seek a compromise solution. He was told that the present Chinese proposal appeared to be a solution without the compromise and without regard to our position in this matter.

5. Minister undertook to report that our preliminary reactions were unfavourable. He thought his Ambassador might seek an early opportunity to call upon the Secretary of State.

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