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BRIEF NOTE OF CERTAIN POINTS MADE BY SIR RALPH STEVENSON (H. B. M. 's AMBASSADOR AT NANKING)

(At C.O. m 20 Syys 48)

ABOUT KOWLOON.

Point 1.

Point 2.

Point 3.

Point 4.

Point 5.

Point 6.

Point 7.

Even if we gave Hong Kong back to China our

relations with China would not greatly improve. This

is because China is suffering at present from a rush

of sovereignty to the head and anti-foreign feeling

is strong.

Even if the Kowloon question were settled the

Kuo-min-tang would seek other sticks to beat us with.

A threat to take the Kowloon case to the

International Court would not induce the Chinese

to climb down far

even though they would not like

(probably) to go to Court.

If we took the case to Court the Chinese would

probably complicate the issue by raising other matters

e.g. the validity of the lease of the New

Territories and how it was effected by the 1943 Treaty.

If we lost the case at the International

Court the Hong Kong Government would probably have

to pay compensation. ? For wrongfully keeping

the Chinese out? Or to the squatters who have been

evicted.

The Ambassador is in favour of a settlement

on the Consulate-General compound basis. He thinks

the Chinese would accept such a settlement. We could

stipulate that the area would have to be cleared and

fenced (by us); if the Chinese then delayed building

a Consulate-General (as is very likely) it might not

matter very much.

If

The Consulate-General compound is the

Ambassador's first preference for a settlement.

this is not adopted, then he thinks the next best

course is probably to let sleeping dogs lie and do

nothing.