Mr. T.W. Kwok telephoned this morning to ask if I would

give him an appointment to discuss the statement which appeared in

the newspapers on September 15th regarding the status of Kowloon

City. I arranged to see Mr. Kwok at 3 p.m. today and we had a talk

which lasted for about an hour.

Mr. Kwok began by speaking rather bitterly about the Chinese

Press, which had made entirely unauthorised disclosures on the sub-

ject and which had added to its misdeeds by attacking him personally.

He then told me that the question of reviving or reasserting

the rights of the Chinese authorities to exercise jurisdiction in

Kowloon City had started with the activities of the Chinese Magis-

trate of Po On. This official had "studied the treaty and other

documents" and had then suggested to the Chinese Ministry of Foreign

Affairs that Chinese civil administration should be set up in Kowloon

City by him in accordance with Chinese treaty rights.

The Chinese Government had agreed to this suggestion and

had instructed the Magistrate of Po On to proceed in the matter.

At this point of Mr. Kwok's account I asked whether I was

to understand that the Chinese Government had instructed its

official to take this action without any application or notification

to the Hong Kong Government or to His Majesty's Government. Mr.

Kwok answered this by saying that he had intended to make some

communication to the Hong Kong Government but that he deferred

doing so until the plans of the magistrate of Po On for setting up

his civil administration in Kowloon City were completed. He had

given very special instructions to the Po On magistrate that he

was not to allow any reference to the matter to appear in the news-

papers. He was therefore much embarrassed when the articles in the

Chinese newspapers of the 6th and 7th September appeared and had

declined to comment on the matter when the newspapers questioned

him; he had therefore incurred their displeasure. I told Mr.Kwok

quite frankly that I was surprised to learn from him that the

Chinese Government had given instructions to one of its officials

to attempt to alter the existing state of affairs in a part of the

New Territories without any notification to the Government of the

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