CO537-3706 — Page 152

COPY FOR REGION

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

AVDED COPY (corrections in para. 2)

Cypher (0.T, P.)

FROM BONG KONG(SIP A.Grantham)

IMPORTANT

D. 22nd February, 1948. R. 22nd

07.00 hrs.

No. 214 Secret

Addressed to J. of S.

Repealed to British Ambassador Nanking, No.53.

171

/and my

position

is boing steadily under**

mined.

Kowloon City.

Proposal of Chinese Government as contained in Ambassador's telegram to the Foreign Office, I regarded ae quite unacceptable. It would be a complete defeat for us and would be regarded by local Chinese and European opinion as concrete evidence that it was the policy of H.M. Government to return Hong Kong to China as soon as the Chinese Government pressed them to do so.

2.

On 13th February, a representative from Po On District office appeared at Kowloon City and told squatters still there to re-erect their huts. This they are beginning to do

brings this Goverment into contempt/ My position is based on declaring Kowloon City part and parcel of the Colony and now it is common knowledge that I am not, repeat not, 10 fact =-exercising

authority in the area. Pressnce 02 representative is also violation of undertaking given by Minister for Foreign Affairs to the Ambassador regarding #releas0

missione (see paragraph 4 of Ambassador'a telegram No.116 to the Foreign Office). This continued failure of the Chinese Goverment to respond to our geature regarding the release of the two men would seem to indicate that tactics of the Chinese Government are to continue to aggravate the situation whilst extorting one concession after another from us until we finally accept: à settlement that would be a Chinese victory with serious effect on responsible Chinese opinionin Non Nong.

3.

If we are driven off Garden of Remembrance proposal as originally put forward in Forsign Uffice telegram Be.115 to Ambassadors we shall presumably have to retreat to the Consulate compound idea on which I have expressed my views in my telegram to you No.147. A further result of such an agreement would be that squatters would be left in possession and squatters problem left unsolved unless the Chinese Government took action to move the squattare without delay and in advance of their erecting Consulate which they might well delay" indefinitely.

LL.

If agreement has to be made on these lines, I endorse (e),(b) and (a) of paragraph 4 of Ambassador's telegram

No.184/