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DISTRIBUTION OF THIS MESSAGE IS TO BE LIMITED TO THOSE OFFICERS WHO ARE CONCERNED WITH ITS CONTENTS

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WARNING: This is an unparaphrased version of a secret cypher or confidential code message, and the text must first be paraphrased* if it is essential to communipate it to. persons outside British or Allied Government Services

(*NOTE: Messages shown as having been sent in a One-Time Pad "O.T.P." are excepted from this rule.)

311334A/August

Addressed C. T.G. 111.2

Repeated C. in C. B.P.F.

S.A.C.S.E.A.

From Admiralty

Date 31.8.45

NAVAL CYPHER(DD) (OTP)

IMMEDIATE

Personal from Chiefs of Staff.

Following is for your personal information and to give you background of negotiations at Chungking.

The Supreme Commander for the Allied Powers, General MacArthur, has already received instructions from the United States Chiefs of Staff to arrange for the surrender of Hong Kong to a British Commander to be nominated by Admiral Fraser, subject only to the completion of military co-ordination between Generalissimo Chiang Kai-shek and ourselves on operational matters in connection with facilities which we have undertaken to grant through the Hong Kong area for the assistance of the Chinese and American Forces in China.

2.

On the basis of that arrangement H.M.Government suggested to Generalissimo Chiang Kai-shek that they would welcome the presence of a representative of his in Hong Kong on the occasion of the surrender. He was subsequently informed that if he decided to nominato an American officer as well as a Chinese Officer that would be equally agreeable to H.M. Governmont. The Chinese and Amorican officers delegated by him, would attend as representatives of the Supremo Commender of the China theatre, and on the assumption that there will be a surrender document they would also sign it as witnesses in that capacity.

3.

The Generalissimo has however stated that he is unable to accept such an arrangement since as Commander- in-Chief China theatre he must himself dolegate his power to take surrender in Hong Kong if surrender is to be accepted by a British Officer. Apart from the instruction a received from the United States Chiefs of Staff referred to in paragraph 1 above as being in accordance with Allied arrangements, other arguments in support of the attitude of H.M. Government are that Hong Kong is not"within China" and that we have an unquestionable right to re-occupy and reestablish our position in British territory. Despite further representations to Generalissimo. Chiang Kai-shek it has not yet been possible to move him from his point of view,

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