CO537-3706 — Page 56

Cypher (0.T.P.)

(##njq?]} 5+ZA DIZEL BM

TO HONG KONG (Sir A. Grantham)

FROM S. OF S., COLONIES.

Sent 20th March, 1948.

14.45 hrs.

No. 371 Confidential.

Following from Foreign Office to Nanking No. 257 of 17th March repeated Hong Kong. Begins..

Your telegram No. 233: kowloon,

It now seems abundantly clear that the Chinese will not accept any solution which does not give them a victory on the question of jurisdiction. This we are unwilling to concede. The alternative seems to be to allow the Chine se to take us to the International Court, where we are advised our case would be by no means a bad one. The Law Officers are however being consulted as to the strength of our legal case and pending receipt of their views we do not propose to take any further action in the matter.

2. Unless the Chinese roade from their present position you should therefore be non-osmittal if they make any

further appræsch, JEnds.

Secretary of State

Bir T. Lloya

Kr. Rees Williams

Sir C. Jeffries

8ir 3. Caine

Mr. Eastwood

Mr. Gorell Barnes

Mr. Poynton

Mr. Rogers

Ér. Galsworthy

Kr. Bennett

Kr. Ian Watt

Mr. Blackburne

Mr. Collins

Colonial Attache

Mr. Bigg

Accounts Branch

Mr. Holding R. 445

Mr. Roberts-Wray

Mr. Mayle

Mr. W.I.J. Wallace Mr. Radford