CO537-3707 — Page 239

Cypher (0.7.F.)

OUTWARD TELFORAM

TO HONG KONG (Sir A. Grantham)

FROM S. OF S., COLONIES

8.

225

185

Rent 11th April, 1948.

No.: 438 Confidential,

15.45 hrs.

Following from Hanking to Foreign Office No.333 of 9th April repeated Hong Kong No. 142 and Canton, EegaS,

My telegram fo.319. Canton outrage,

Political Vice Minister for Foreign Affaire seat for His Majesty's Minister April 8th and handed him aide memoire with reference to my further communication (see last two sentences of first paragraph of my telegram under reference) to which Vice Minister for Foreign Affaire explained that the Minister for Foreign Affairs would not be replying formally just yet.

2, Aide Memoire copy of which followa, contained the Following statement@t-

(a) Matter of enatous duty exemption for nor official gobemes would be takon up again and it was hoped that the result might be favourable.

(b) reports that the Chinese investigatore shoved that "Chinese authorities concerned bad taken what was considerod to be the 860888017 precautione immediately after the Kowloon City incident when they foresaw what might follow in its wake". In the conrus of the incident more beng 100 persone More arrested of whom 26 have been held or trial and if found guilty would be duly punished. Local authorities could therefore "ot be charged with any lack of due diligence in the matton".

*.

(c) an spite of "absence of responsibility on the part of the Chinage Government, the inlater of Foreign Affairs "has been carefully checking losses sustained by the parties concerned and is prepared to recommend to the Chinese Government an equitable solution of the question" but "12 this rocommendation were made prior to settlement of Kowloop affair if would meet with serious difficulty and chance of it being accepted would be very slim". The position of the Chinese Special Commissioner at Hong Kong was "not at all comfortable" ea he had the task of trying to pacity. Kowloon sympathisers of the squatters.

(d). It was therefore hoped that Hin hajosty's Government would forthwith reach decision oa formula for settlement suggested to me by Minister for Foreign Affairs on March 3rd (see my telegram Hos.223 and 231).

13.