FO371-46252 — Page 35

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[This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on].

CYPHER]

CABINET DISTRIBUTION.

FROM CHUNGKING TO FOREIGN OFFICE.

Sir H. Seymour.

No. 857

16th August, 1945.

MOST IMMEDIATE.

TOP SECRET

GUARD

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D:

6.50 a.m. GMT 16th August,1945.

R:

8.10 a.m. BST 16th August, 1945.

5 5 5

F5236

My immediately preceding telegram.

In handing over Chinese reply to Counsellor Acting Minister for Foreign Affairs made the following points:

(a) Reply only deals with question of surrender arrangements and aims at avoiding any conflict with President Truman's instructions to the Supreme Commander;

(b) China has no territorial ambitions either in Hong Kong or French Indo-China and would not take advantage of the fact that these territories are in China theatre to establish possession. The Chinese Government regarded Hongong as a matter which would require eventual settle- ment through diplomatic channel;

our (c) Chinese Government regarded announcement of divided intentions as rather high-handed.

2.

In regard to Hong Kong, Counsellor said that speaking personally he did not think that His Majesty's Government would like the idea of Chinese divisions descending upon the Colony to dispossess Japanese: such an action would tend to create disquiet in the Colony and would, if British force were available to take it over, merely be an added complication.

3. As regards Saigon, the Counsellor pointed out that British proposal did not seem to run counter to General MacArthur's order of surrender.

4.

Difficulty seems to be one of "face" On Saigon point seems to be that Generalissimo fears that theatre of Japanese southern armies may extend north of latitude 16 degrees. regards Hong Kong possible solution might be for arrangements

AS to be concerted with Chinese Government for a nominee of the Generalissimo as Supreme Commander of China theatre to accept surrender jointly with Flag Officer of British Naval Force: but in view of MacArthur's instructions Generalissimo may refuse to change the view expressed in the memorandum.

[Advance copies sent to Chiefs of Staff, General Ismay and

General Hollis].

OTP

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