FO371-24688 — Page 161

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INDEXED

13139/19/20

Colenial Office Reference No. 13139

With 3 compliments of the U.S. of S.

Date

AUG 100

Reference_

13139/11/40.

CYPHER TELEGRAM.

Colonial Off

t

1940

358

TO

O.A.G.

HONG KONG.

Sent 8.10 p.m. on 2nd August, 1940.

= 3703

IMPORTANT.

5 AUC 1940

No. 426.

Evacuation. Request of Unofficial members of Legislative Council as stated in your telegram No, 454 has been considered with all possible sympathy but H.M. Government regret that their view of political situation in Far East is not such as to warrant cancellation of evacuation order, and I can only agree to relaxation to extent approved in my telegram No. 405.

I must add that I regret that racial grounds have been used in Legislative Council to criticise essential defence measure.

Much as I regret serious loss caused by evacuation measures defence policy must tc-day override trade interests in Hong Kong as in this country. As regards civil liberties unofficial members must appreciate that temporary curtailment has been cheerfully accepted in the U.K. itself.

I am glad to note that defence of Hong Kong has been assisted by voluntary evacuation of some non-Europeans, and this should be encouraged with due regard to essential defence services, It is not practicable compulsorily to evacuate British subjects of Chinese or other race whose permanent home is in Hong Kong, but it is both practicable and desirable in case of Europeans and it is not unreasonable that contribution to cost of this as of other local defence measures should be made from Colony funds - H.M. Governmer:t is prepared to contribute up to 50% of cost of civilian families end they assume that the balance will be borne by the families concerned. This practical co-operation by H.M. Government should satisfy criticism in first paragraph of your telegram No. 451 and in second sentence of message in your telegram No. 454.

I think, however, taken vote should be taken in Legislative Council for any part of balance which i# net bome by erɛcun bed families and I approve use of official majority for this purpose at early meeting of Legislative Council. But in view of decision of H.M. Government to share burden of cost with Hong Kong I trust that unofficial members will not oppose defence expenditure in thìo crisis and that criticism in Press also may be checked.

I agree that local defence expenditure has prior call on appropriations from specia) war revenue, and is no less to be counted as contribution to expenses than gifts to HI.M. Government itself.

Above may be communicated in confidence to members of Legislative Council.

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