2.

(22) (24)

9

"Kowloon Tsai" - a small village a mile or so from

Kowloon City. This village was resumed in 1933 for town

planning purposes on far less favourable terms than are

offered for Kowloon City and the wire-puller may be one

of the ex-owners. In any case his statements regarding

"daily threats" are totally untrue and indicate a determin-

stion to embarrass the Hong Kong Government at all costs.

I may add that the District Officer New Territories

(South), a member of the Hong Kong Cadet Service, has

discussed the question of removal several times during the

past eighteen months with the inhabitants of Kowloon City

and reports that they have been exceedingly friendly. The

results of these discussions are set out in my telegram to

the Secretary of State for the Colonies of 6th and 16th

July, 1934.

2.

On the one hand therefore we seem to have an

implacable enemy determined to make trouble. On the other

we have the Chinese Government stating plainly that "The

"rights of jurisdiction within Kowloon City have always been

"patently distinct from the newly leased territories outside

"the city which are exclusively under British jurisdiction;

"the people within the city therefore without exception come

"in every respect under the control of the Chinese Govern-

"ment and the authority of His Excellency the Governor of

"Hong Kong cannot of course be exercised within the City.'

To which it must be added that the known attitude of the

Chinese Authorities towards private property when

"development" is in hand, is such as to make preposterous

any case based by Nanking on the alleged meapreness of

this Government's terms which are, in fact, extremely

generous.

"

3. /

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