CO537-3706 — Page 68

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telegram about publicity at this juncture. doubts would not, I think, apply to the inclusion in our next communication to the Chinese of the reference, to publicity suggested above. There might be some advantage in our reminding the Chinese Government of the likelihood of publicity at this stage, and, indeed, it might be only fair to do so.

4.

As regards the assumption made in paragraph 2 of the Governor's telegram, we think that we can safely say that we could successfully resist any attempt to introduce consideration of the merits of the lease of the New Territories in any proceedings before the International Court. Further that, insofar as the legal aspect of the lease is concerned, any pronouncement by the Court on that issue could only be in our favour and is unlikely to be welcomed by the Chinese. If you agree, we should propose so to inform the Governor.

5.

You will recall that in his telegram No.283 the Governor of Hong Kong suggested that the eviction of the residents from the Walled City of Kowloon in 1936/37 might provide us with a line of argument with the Chinese Government in connection with the present issue. You will no doubt consider whether it would be possible to introduce an argument on these lines in the next communication to be sent to the Chinese.

I imagine that one difficulty will be that the Chinese will be able to say that they were in no position to take up this question vigorously in 1937 when they were under attack from the Japanese. I don't know

whether