CO537-4847 — Page 8

[601B] Wt. 36325/814 50m. 1/49 C.N.Ld. 748

54484/49.

Radford 23),2

0.

Mr.

Mr.

Haly

Mr..

Sidebotham

Mr.

Mr..

Permt. U.S. of S.

Parly. U.S. S.

Minister of State

SECRET.

DRAFT.DESPATCH

Secretary of State

Your Reference.......

For F.0. concurrence.

Sir,

GOVERNOR

HONG KONG

Copy of drug note

/Copy & 27854/19/8/1

Copy for Generar Marsy,

*1

P.J. Crates,

and in this commeation

1

(1)

I have etc. to refer to your

secret despatch No.31 of the 17th

October, 1949, transmitting a

memorandum on problems likely to arise

between Hong Kong and the Chinese

Communist regime and to express regret that you house not received

the

an either reply events have alre The memorandum has provide

mem vaudoune

dy shown,

a useful analysis of the problems expected

to be

envisaged, some of which of course have

-already arisen and are the subjeet

Fo.

of poperate

would refer in particular to the section of the memorandum

dealing

with shipping, matica

chinese Communists

shifter prting. Whether or not such action would the exfpedigut can only be decided and when the time comes in the light of the political and

Sigencies,

FURTHER ACTION.

I should observe beat

Some of the action which It is there proposed should be Laken against

the Clmiers Communals would be cont

12

contrary M.M.G's general shipping.

non-discrimination policy of

and the avoidance of adminstrative devices of a dis comin abary character,

correspond nee In general

O should However,

I approve the policy disclosed thre

Istemet make it laus that pohall wish

but the detailed action

proposed to be taken, if and when

particular problems arise

be subject to further careful

consideration and in some cases

Consul:

He in the light of

Conside

all the circumstances prevailing at the

time

-I attach a not

the

memorandum com enting on a number of

points and referring to the other

correspondence which in some cases is

proceeding. I have noted that in several

_sections