CO537-3707 — Page 125

examination by the other. It is doubtful whether it would

be sufficient to say that in event of Communist attack,

not anticipated as likely to occur in foreseeable future,

Chinese jurisdiction in Kowloon would be a source of

danger or embarrassment.

2.

In view of this opinion, H.M.G. have come to

the conclusion that not only can there be no question

of their taking the case to the International Court,

but that they must also avoid getting themselves into a

position where the Chinese might take the case to the

Court. In these circumstances, it is highly desirable

that some compromise solution should be arrived at.

3. In these circumstances, do you wish to

modify your views on Nanking telegram No. 561 to

Foreign Office?

SECER.

(262)

Page 125Page 126