CO537-3711 — Page 50

With regard to the main point dealt with in your letter, while, naturally, we should like to see the case settled by a compromise acceptable to both sides, our first reaction is that we should like to have the views of the Law officers on the legal position before coming

We should also to a conclusion on your suggestion. like to know the views of the China Department of your office on it. Perhaps the best course would be to discuss it when we (with members of the Foreign Offics and Colonial office departmæta concerned) meet to

But consider the draft reference to the Law officers. even if the view is then prima facie favourable to your suggestion, we should not be able to reach any final eonelusion on it without further consultation with our Ambassador at Nanking and the Governor of Hong Kong, and we feel that the reference to the Law Officers should not be held up

The question while all that is going on. seems to me hardly ons upon which we should ask the Law

Officers' adrics, but we might add at the end of paragraph 18, "The possibility of a compromiss solution on fresh lines is still being explored, but the prospect of finding a basis of agreement acceptable to both sides seems remote, and in my event it is considered necessary at this stage that your advice should be sought as to H.M.G's legal rights".

Yours sincerely,

K.0. Roberts-Wray.

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