CO537-3711 — Page 16

2. If it were desired to initiate proceedings, we think a

special declaration under the optional clause should be made.

If this were done we think that it would be unnecessary to

negotiate a special agreement for submission to the International

Court.

AB

3. de refer to our answer to 1. Se do not think is

Majesty's Government could successfuly resist the Chinese

clain unless upon the ground of nilitary requirement.

stated, we doubt whether it would be desirable to litigate

this question, but if it were litigated, it would be necessary

to establish that there was some present or apprehended

contingency of a military character which, from a military point of view, rendered it impossible to agree to a resumption--

of Chinese jurisdiction.

Generally, our reference would be that negotiations shoul be continued upon the lines on which they are at prosent pro

ceeding. e think that any compromise which included some

acceptance by the Chinese of the position that any concession the British Government might make wes not to be construed as

an admission of the Chinese rights to resume jurisdiction

would be desirable in Fritish interests.

e pay this because

in general, we do not feel that the British case really is in

any sense impregnable. Apart from the defence of military

requirement we think that the British case is weak, and we fesl

a little uncertainty although on a technical military question.

,

-

of this sort we speak with great reserve and hesitation

whether, even if Great Britain were prepared to litigate the

matter, it could be affirmatively established that there was

sone actual military situation at present subsisting or

likely/