to which was made in the Canton Gazette, a semi-official
English language newspaper published daily in Canton,
and the Hong Kong press in May last. The Chinese contention
seemed to be that mining rights in the New Territories
were not ceded by the Chinese Government when they
concluded the lease agreement for these territories, and
that therefore the Government of Hong Kong has no power
to grant licences in respect of mining in this part of the
Colony. In August he also raised the question of the
granting of licences to Japanese trawlers to fish in Hong
Kong waters, and, on September 7th asked me to protest
to the Government of Hong Kong on his behalf against the
use by a Japanese warship of the waters adjoining the leased territories for an attack on Chinese Customs cruisers (see
my telegram No. 63 of 8th September). In general, his line
seems to be that the New Territories, and Kowloon City in
particular, are no part of the Colony proper of Hong Kong,
and that China has by no means forfeited all her rights, as
ground landlord, in these territories, and the adjoining
waters under the lease agreement.