CO537-3707 — Page 238

3

In paragraph 6 of his letter, Scott suggested that it might be worth while asking the Ambassador to let us see a draft of the sort of statement he

7

(207)

had in mind in paragraph 1 of his telegram No.276 of (210) the 18th March. We note, however, that at the end of paragraph 3 of that telogram the Ambassador expresses a preference for the procedure which we are, in fact, adopting, of which he will now be aware from Foreiga Office telegram to Nanking No.257, which crossed his telegram. In his latar telegram No.333 of the 9th April, the Ambassador suggests that it may be expedient to try and resume discussions with the Chinese Government on the Kowloon City issue and refers to his opinion that the proposal for a com- pound for the Chinese Representative would afford the best basis for a settlement. You will no doubt be consulting us if you think it necessary to say any- thing to the Ambassador regarding this suggestion. My own personal view is that it would be a mistake to make any further proposals to the Chinese unless they are prepared to accept the fact that we cammot accept their claim to jurisdiction or agree to any settlement which could be reprosented as acceptance of their claim.

Sgd

(N.L. Mayle)

!