CO537-3706 — Page 192

176.

Cypher/OTP

POLITICAL DISTRIBUTION

FROM NANKING TO FOREIGN OFFICE

Sir R. Stevenson

No. 140

7th February 1948

D. 9.20 a.m. 7th February 1948 R.10.12 a.m. 7th February 1948

Repeated to Hong Kong.

IMMEDIATE

LIGHT

RESTRICTED

7..

140

что

Addressed to Hanking [sic] telegram No. of February 7th repeated for information to Hong Kong

75

Your telegram No. 3.

98

My views are partly contained in my telegram No. 99. As a general consideration the fact should be kept in mind continually of agitation by the Kuomintang on subject of our position in Hong Kong against which we have very little means of defence. so that the fower grounds we leave to Kuomintang to foment such agitation the better. In the present case however, Ministry of Foreign Affairs are clearly unwilling that the situation should be exploited to such an extent. We are therefore in a better position to remove grounds for fomontation by negotiating a compromiso under which we may hope to render it less easy for Chinese to revive this particular issue in the future.

2. The following four main compromise proposals have been so far put forward:

a) the turning of area under dispute into a public park (my telegram No. 49)

(b) site to be made available to Chinese Government as premises for Chinese maritime customs (Colonial Office telogram to Hong Kong No. 74), 3

(c) site to be garden (or park) on which should be erected office of Commissioner for Foreign Affairs of the provinces of Kuangtung and Kwangsi or a Chung Shan hall

my telegram No. 65 and also so far as suggestion for an office is concerned, in your telegram to me No. 75)

Igps. undoc. ? (d)] Entire area to be given to Chinese Government for crection of a Consulate-General (Canton telegram to Nanking No. 15).

3. These are accompanied by other suggestions such as release of the two Chinese agitators from prison for which Chinese Ministry of Foreign Affairs are pressing hard. My views on this are contained in my telegram No. 98.

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