3.

30

(1)

3.

I am accordingly confirmed in the view expressed

in the final paragraph of my Confidential despatch of 9th.

January, 1934, that the Chinese Government is determined to

extract an admission of their special right over Kowloon

City. In my opinion no such admission can be made without

incalculable damage to British interests not only in this

Colony but throughout China.

4.

You will no doubt wish to obtain definite

instructions from His Majesty's Government before answering

the Wai Chiao Pu's note, in which case I shall presumably

receive a further communication from the Colonial Office.

In the meantime I propose to proceed with the building of

the new village but to hold no further converse with the

present owners unless pressed in which case I would

propose to state that this Government's plans are unchanged.

I have the honour to be,

Sir,

Your most obedient servant,

(Signed) W. PEEL

Governor, &c.

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