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selected and half elected, with the proportion of the latter gradually increasing.
3.
We agree with the points Keswick makes in paragraph 4(d); for example, Chinese are at present not allowed to own property on the Peak, and there are doubtless other forms of discrimination.
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As regards the New Territories, Chiang Kai-Shek made it plain in his speech on the 24th August last that china would soon ask us to hand these back. Whether wo should wait for this, or ourselves make the offer (subject to safeguards about water supply, air fields, etc.) is a matter of olicy and expediency which appears to be largely for the colonial Jffice to decide.
5.
on the question on the secretory for Chinese Affairs, we are in agreement with Keswick's suggestion that the Colonial Government might with advantage concern itself more with external, i.e. Chinese, affairs. e also agree that a Foreign service officer with China experience should be appointed to serve in Hong Kong for this purpose. Le feel however that such an officer should have a statua independent of the Secretary of Chinese Affairs, that is to say instead there being a "Secretary for Chinese aná External Affairs", to whose department the Embassy repres ntative would be attached, there should be a secretary for Chinese Affairs and a Secretary for External Affairs, the latter being a foreign service officer, who mould be responsible direct to the Governor' nd also to the Aubussador, reporting to and corres,onling with each as the occasion required.
Yours sincerely,
Jaso. v. xitson)
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