CO537-3706 — Page 154

Cygn (0.7.P.)

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

FOR BE

A

FROM HONG KONG(Sir A.Grantham)

171

IMPORTANT

No. 214 Secret

De 22nd February, 1948 «

22nd

1945

*

07.00 hrs.

Addressed to S. of S.

Repeated to British Ambassador Nanking, No.53.

بڑا مسنتر

זי

Kowloon City.

Proposal of Chinese Government as contained in Ambassador's telegram to the Foreign Office, I regarded as 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 Goverment 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 *(? to) bring this Government 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: in fact

(corrupt group)ing authority in the area. Presence of

representative is also violation of undertaking given by Minister for Foreign Affaire to the Ambassador regarding

(corrupt group)missions (see paragraph 4 of Ambassador's telegram No.116 to the Foreign Office). This continued

failure of the Chinese Government to respond to our gesture 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 a settlement that would be a Chinesc victory with serious effect on responsible Chinese opinion in Hong Kong.

3.

If we are driven off Garden of Rememberance proposal as originally put forward in Foreign Office telegram No.115 to Ambassador, 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 aquatters problem left unsolved unless the Chinese Government took action to move the squattere without delay and in advance of their erecting Consulate, which they might well delay indefinitely.

4.

54145/16/48

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

No.181/

FGISTRY