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OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

Cypher (0.1, F. }

RO BORG KO60 (str A. Greuthe)

Seut 23rd July, 1948. 45.00 bre.

Fr. 82% Confidential

Termole/BRITI

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Following from Yanking to Porsiga office Bo. 609 of 21st July repooked Hong Kour No. 224 and Centon Begine.

My telegram No. 597 end your telegram No. 240,

Canton outrage,

IG OOLYEYWA610 vith Presideft Chiang on July 49% I Sold him of the painful impressico made un 29 13 the reply given to me by the Minister for Farsign Affoire when I bed raised with kia the question of argenER £108 For the Canton outrage.

Presideri Obdang was pt pains to explain tän& the Chindad Goverundat vode anxious to gas this case end that of Kooloon melled city settled simultaneously, Chinese Government were being secubed of extreme wask 1005 and Cowloon case eas constantly being oited es an instance of thio, Govoroment would expose themselves to resp Jannging attacks by their ocenies if they doslt with caxtda ease in advance of Kowloon

I replied that while I could understand thedr appzskoneions I could ageurs bin that the flat refega). of Minister for Poreign Affairs to propeed eny further ** the question of compennation for the Caurul outyoge hofors * A****ut of Kowloon oiy case would not only be ag dieturbing to His Majesty's Government ae it was to me bab would sense a deplorable impression in the United EiARCO, Waday 92 as possible, rou had to gire an anovor to .$pat ntact to a Parliamentary question, Chinese derevuren would undoubtedly be regarded do seeking to justify 30 deme danner the wanton destruction of Oonemar pesai Nea at a friendly poves

After Boge diccumulon with a representative of the Ministry of Poretya Afairs who was prevent Prooident Obdang told me that reply gies to me by the minister for Forsten Affaire should not be regarded as a refusal to proceed with oerpenestion question bat bevely as an cipresoton of tha Chinese Opvermæt'e (gp, nadeo,) to vee a simu tangouu cettlement of the $00 enro✡. I thanked bla Por ahda Spianation but asid that it did not take the netten #oak. further formard. Could not the Chinese Gorozumenit, go Zar bad only aoid that their setion da the matter would be "in accordance with interationut sage". atue statement accepting principle of compensation? President Chiang agreed to consider this possibility in Do Jena 62 on with Minister for Bonety Tairs,

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I think that my baking the matter up thes forcibly with him may have done some good though I do not aappien no vill ane aur real gengross in advauna of A nettleseat cz Kevl000.. It had been my intention

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