territories of docks, industrial and commercial buildings

and residential extensions of the urban area of Kowloon.

3. In the course of the negotiations which preceded

the conclusion, in 1943, of the treaty providing for the

abolition of extraterritoriality in China, the Chinese

Government made a request for the rendition of the New

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Territories. His Majesty's Government refused to

* 2

consider this question in connexion with extraterritoriality,

but intimated that, if the Chinese Government desired

j

that the question of the lease of these territories should

be reconsidered, that was a matter which, in the opinion

of His Majesty's Government, should be discussed when

4.

victory was won. The Chinese Government thereupon

reserved their right to raise the question later.

4. In June and July of 1946 Generalissimo Chiang

Kai Shek and Dr. Wellington Koo referred to the

"Hong Kong problem" and the desirability of finding

an early solution, in the course of conversations

with Sir Horace Seymour and the Minister of State

respectively. Copies of the two documents reporting

these conversations are attached (Annex III). Later on

that year there was some Press agitation in China and

Hong Kong on the particular question of the resumption

of Chinese jurisdiction within the Walled City of Kowloon.

5. These events, linked with other indications of

the resurgence of Chinese national feeling regarding

*

Hong Kong, and the possibility that the informal approaches

referred to above will be followed by a formal request

for the opening of negotiations, make it desirable to

examine the line that we should take in the event of

negotiations with the Chinese.

6. We are virtually committed to discuss the New

Territories, and the Chinese Government may take the

ries,

opportunity to put forward a claim to the return of the

ceded area of Hong Kong. Such a claim, if made, might

receive some support from other countries, though

this

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