CO537-3711 — Page 53

Rused oft

should begin "whether the dispute is a suitable one,

etc."

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

to a conclusion on your suggestion. We should also

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 Office and Colonial Office departments concerned) meet to

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

But

final conclusion 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 while all that is going on. The

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questim showed ask for

un might add

Yours sincerely,

hands

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the Law Offices' advice,

at the end of paragraph

18,"

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