which thereafter, by Her late Majesty's Order in Council, was incorporated in the leased territory and be- came subject to British rule."

This paragraph is not very explicit on the circumstances in which in 1899 it is stated that Chinese officials ceased to have jurisdiction within Kowloon City. I believe that at that time the Chinese Government were informed that their jurisdiction within this area would no longer be recognized and that they neither accepted nor rejected this announcement but the matter was shelved. During the succeeding years the question has been raised on more than one occasion and I believe on the last oceasion in the middle 30s when the rights of squatters within the walled City was raised. soon as I have been able to get copies of the Treaties and the relevant files I will write a short note on the position. Meanwhile Mr. North is very kindly putting his recollection of the position on paper.

x AS

My attention was drawn to these extracts from the Monitoring Digests by the Foreign Office. And I have said that when we have prepared a factual note on the position we will let them have a copy. No doubt we shall be hearing from the Governor about this matter in due course and for their part the Foreign Office propose to await information from Nanking.

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18.9.46.

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