See page 17 of State Papers

1897-98.

(flagged red below

See 5(a) on

53552/35

helaw)

doubtful.

The Convention are agreed that Chinese

Officials should continue to exercise juris-

diction within the City of Kowloon, except so

far as may be consistent with the military

Consist

requirements for the defence of Hong Kong.

The Order in Council of the 20th Oct. 1898

gave effect to this agreement in Article 4.

When, however, the Hong Kong Administration took over the new Territory they were met

with armed resistance and it was decided that

any retention of Chinese jurisdiction in the

City of Kowloon was incompatible with the

defence interests of the Colony. The history

of the affair is summarised in Mr.Gent's

memorandum, noted in the margin. To give effect

to the abolition of Chinese jurisdiction a new

Order in Council was passed on the 27th December,

1899, which revoked Article 4 of the previous

Order and declared that the City of Kowloon

should be part and parcel of H.M.Colony of

Hong Kong.

end

It may prove difficult to define our

position if the Chinese Government should

appeal to the P.C.I.J. Whether or not such an

appeal takes place, refusal to allow the admis-

sion of Chinese jurisdiction may have serious

effects on our relations with the Chinese

Government and on our commercial activities in

Southern China, as the Ambassador fears. (See 12).

Unless these considerations are judged to be

overriding, however, it does appear most un-

desirable that foreign jurisdiction should be

allowed in the middle of a large commercial

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