CONFIDENTIAL

DSR 11C

sides, that Chinese boats should operate in the two bays, Hirs Bay

and Deep Bay. However, each side is also sensitive to public concern

in the Colony over armed Chinese vessels sailing close to the islands

of Hong Kong or particularly near the harbour approaches. Although such

courses offer the shortest route to Chinese patrols transferring from

one bay to the other, it is by mutual agreement generally avoided.

The last incident of this nature occurred in March 1978 (before that it

was 1963) when the Hong Kong Government expressed its concern to New China News Agency representatives.

133

Foreign shipping entering Hong Kong through one of the two

standard approaches using the Lamma Channel is warned by the Chinese

authorities whenever vessels pass within five miles of a signal station

on the Chinese island of Tan Kan Shan.

Therefore virtually all ships

arriving and departing Hong Kong make a point of keeping at least five

miles from the nearest Chinese shore.

134 The Peking Convention of 1898 provides that "the existing landing

place near Kowloon City shall be reserved for the convenience of

Chinese men-of-war, merchant and passenger vessels which may come and

go and lie there at their pleasure". This provision clearly comple-

mented a clause which allowed that "within the city of Kowloon the

Chinese officials now stationed there shall continue to exercise

jurisdiction except so far as may be inconsistent with the military

requirements for the defence of Hong Kong". However, an Order in

Council of 27 December 1899 revoked Chinese jurisdiction in the walled

city of Kowloon and it is unclear whether the rights in regard to

Kowloon Harbour then also lapsed. In any event, it seems unlikely that

China would in the present circumstances claim rights conferred by the

19th century treaty.

/Hong Kong-China

COMET DEMIET AL

Dd 0532000 40014 3170 HUKO DI

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