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No.1
abeyance but that if His Majesty's Government persist
in "stirring up a treaty dispute" then they must challenge
the right of His Majesty's Government to continue to
exercise jurisdiction in Kowloon City. Although there
would appear to be a strong case as regards the present
exercise of such jurisdiction and at least an arguable
case as regards its future exercise, Sir John Simon would
prefer to avoid if possible embarking on discussions with
the Chinese Government which would necessitate the use
of the arguments referred to in paragraph 2 above.
He does not suggest that the Government of Hong Kong
should abandon or postpone their plans for the removal of
insanitary conditions in Kowloon City, but he would be
glad if His Excellency could be asked to consider whether
it would be possible to carry out the scheme with the
consent of the Chinese owners concerned, on the lines
suggested in paragraph 5 of his despatch enclosed in
your letter under reference, without actually resorting
to expropriation. In the meantime Sir Alexander Cadogan
is being asked to report by telegraph what the probable
reaction of the Chinese Government would be in the event
of the expropriation scheme being proceeded with.
I am,
Sir,
Your obedient Servant,
Cr. Onda C.W. orde