8 and 9. The clauses providing against expulsion or expropriation of the inhabitants, d for dealing with extradition cases need no comment,

reign Syndicate to undertake it the vagueness of this clause will have a deterrent The Ministers were naturally not disposed to give way without opposition, and thfluence, whereas an English Syndicate could make an arrangement with the Colonial

2.88 met my demands by sundry counter-proposals, such as that Great Britain should hathorities. full liberty to erect fortifications on the Kowloon mainland, and station troops at a points she pleased with full freedom of movement. I answered by demonstrating

10. The last clause, regarding the use of Mirs and Deep Bays by Chinese men-of- Inconveniences of such an arrangement, and the only point on which I agreed to e

As explained by sider the possibility of some arrangement was the retention of Chinese jurisdictioner, is one for which I am still awaiting your Lordship's "sanction."

legraph the concession was necessary to make the Yamên agree to the lease to us of the city of Kowloon. On this I shall make some remarks later on.

It took more than one discussion to secure the consent of the Yamên to the leeole waters of those bays. I had, as already explained, placed the whole territorial of so great an area as that shown in the chart, and when they had accepted mand before them in a map several weeks before, and they were naturally reluctant to discussion of details began and supplied material for several more interviews. Instead ke at the eleventh hour the additional concessions laid down in your Lordship's describing these in detail it will, I think, be more convenient to make observations legram No. 153 of the 20th May. Moreover, they had been counting on Mirs Bay as a the various points included in the inclosed draft Convention, taking them in order arbour for their southern squadron when it comes into existence.

I explained to them the withdrawal of our Western frontier somewhat to the east- they appear in it :-

ard as induced by our desire to give no foreign Power a pretext for interference with They seemed to appreciate this, though at first 2. The question of the nature of our title to the extension of territory was meaty ports or the approaches thereto. troublesome. I tried to obtain an absolute cession, but could not resist the force of clined to suspect our magnanimity to be intended to induce them to give far more on argument that all other natious who have obtained leases of territory would follow se east side.

The American squadron in these waters made Mirs Bay their base after the which might be inconvenient for ourselves. The principle of a lease having been admit

laration of war necessitated their leaving Hong Kong. I do not know whether they a term of ninety-nine years seemed sufficient.

ll use that base, but, if so, the coming into force of this Convention on the 1st July ay, as I have suggested to your Lordship by telegram, be inconvenient.

1. The Preamble was accepted without objection as an adequate basis.

3. The only part of the new boundary needing survey is the line connecting Bay with Deep Bay.

I have also ventured to recommend that before. the Convention is signed a pledge

4. The retention of Chinese jurisdiction within Kowloon city was the point on wh the Yamên showed the greatest determination, and the concession made to them would be given by the Hong Kong Government that they will take proper measures for far to reconcile them to the general demand. Apart from the fact that there policing of Mirs Bay, and the other territory placed under their control, and for the Japanese, German, and Russian precedents for such an arrangemont, the Ministers,evention of smuggling.

No definite agreement has been made on the point with the Chinese Government, whom two of those chiefly concerned in the negotiations were Cantonese, showed siderable anxiety as to the effect on public opinion in the Canton Province of any sudt it was understood that such measures should be taken. and conspicuous change in existing conditions. If the administration of law in Kowl Previous to the inclusion of Mirs Bay in the lease I was authorized by the Coloniał eity were transferred to the Hong Kong Government, the latter would, of course fice, through your Lordship, to promise an energetic enforcement of existing arrange- obliged to inforce a number of rules to which the population are at present not liaents, and with that inclusion the necessity for the assistance of the Colonial authorities and I think it probable that the Yamen was right in anticipating that this would lead preventing smuggling becomes much greater. Protection of the revenue of China is trouble.

primarily the duty of the Colonial Government, but that duty is morally imposed on

It is not to be supposed that the city of Kowloon will long remain outside Briem by the circumstances under which they obtain an increase of territory, for our jurisdiction with the surrounding district subject to it, but I think that no harm and was based on, and justified solely by the necessity of providing for the better result from allowing it to do so for a few years longer, and that little inconveniencetection of Hong Kong.

I have, &c. (Signed)

be caused by it, especially as the authority of the Chinese officials will be exerci I do not mean to suggest that the Hong Kong Government would be slow to do subject to the stipulation that it does not interfere with military requirements. I I shatever can be rightly expected from them, but I think that by pledging themselves recommend that every effort be made by the Hong Kong authorities to work smoot fore the extension of territory is actually assured they may find it more easy to reconcile with these officials--at all events at first-and to induce them to cordially co-opere local public to measures otherwise perhaps distasteful. in all matters where their assistance is needed. I do not, as I have already said, exp the Chinese jurisdiction in the city to be of long continuance, but I should be sorry, the sake of general British interests in China, if, after the Chinese have met wishes in so friendly a spirit, we were at once to set to work to obtain a further cession.

5. The provision for free use of the road from Kowloon city to the mainland inserted at the Yamên's request, though I told them that the movements of Chir officials were in no way restricted in British Colonies.

Inclosure in No. 1.

CLAUDE M. MACDONOR USE

Drift Convention for the extension of Hong Kong.

PRIN

EASTERN

No.

COLONIAL

OFF:

6. The reservation of the existing landing place near the city was a point ou wi

WHEREAS it has for many years past been recognized that an extension of Hong they laid much stress. I accepted it with reluctance, and it may possibly prove ing territory is necessary for the proper defence and protection of the Colony, it has venient, but it was necessary to make some concession in order to obtain our been agreed between the Governments of Great Britain and China that the limits demand without great friction and under pressure of threats. I hope that in view British territory shall be enlarged, under lease, to the extent indicated generally on annexed map.* The exact boundaries shall be hereafter fixed when proper surveys this consideration the inconvenience, if any, will be tolerated as long as possible.

7. The railway clause was introduced at a late stage in the negotiations. Ministers said that the Chinese Government contemplated building a line from Call be ninety-nine years. to Kowloon city, and they asked for a promise that this should be allowed, on the gro that the line would not pay it it stopped some miles short of Kowloou. I said that possibly we should build a line from Kowloon to the frontier which might meet Chinese line, but in any case it was impossible to allow a line under Chinese contre run through territory under British jurisdiction. The Ministers then altered their clause to the form in which it now stands.

d

re been made by officials appointed by the two Governments. The term of this lease

It is at the same time agreed that within the city of Kowloon the Chinese officials stationed there shall continue to exercise jurisdiction except so far as may be onsistent with the military requirements for the defence of Hong Kong. Within the mainder of the newly leased territory Great Britain shall have sole jurisdiction.

Chinese officials and people shall be allowed as heretofore to use the road from owloon to Hsin-an.

It is so vague as to be almost grotesque, and I thought of making it cleare It is further agreed that the existing landing-place near Kowloon city shall be stating that the arrangements to be considered were for the extension to Kowloon,erved for the convenience of Chinese men-of-war, merchant and passenger vessels, on reflection the vagueness seemed not without advantage. It may be that the Chi Government will build the suggested line out of their own funds, but if they try to g

• Not printed.

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