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This telegram is of particular secrecy and should be retained oy the authorised recipient and not passed on].

Cypher/OTP

DIPLOMATIC DISTRIBUTION

Mr. Lamb,

FROM NANKING TO FOREIGN OFFICE

D. 9.15 a.m.

2nd November, 1948.

No. 1084

1st December, 1948.

R. 10.03 a.m.

2nd November, 1948.

Repeated to Hong Kong,

Commissioner General S.E.Asia Saving.

IMPORTANT SECRET

Addressed to Foreign Office No. 1084 of 1st December. repeated for information to Hong Kong and Saving to Commissioner General in S.E...sia.

Hong Kong telegram to Colonial Office No. 1079 repeated to me in your telegram No. 893.

Kowloon.

(299)

Suggested solution has its attraction but I consider it would be essential to obtain the concurrence of the Chinese Government before presenting it for open discussion at ECAFE meeting. Though I imagine that the reaction of Chinese Government would be [gp.undec, unfavourable], Ministry of Foreign Affairs might be prevailed upon to consider it more sympathetically if stress were placed upon the desire to reach an accord likely to contribute to peaceful relations. If however proposal were to be sprung upon them without previous consultation, the Chinese Government might be encouraged to raise awkward and controversial issues with undesirable publicity.

2. In any case in view of uncertainty of survival of the present Chinese Government there is no assurance that any succeeding administration would honour any such agreement made by [gp.undec.? its predecessor] particularly if new government would be Communist. dominated as seems inevitable. In the circumstances it might be politic to leave the Kowloon issue dormant at this juncture.

3. A minor consideration which is none the less worth keeping in mind is that the presence in Kowloon of this United Nations Organisation head garters might afford a pretext for entry into Hong Kong of undesirable elements of some of the participant nations.

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