sites for an airport, are with one possible exception,
in the new territories, the construction in recent
years of large waterworks in the new territories for
supply of water to Kowloon and Hong Kong Island, and
the extension into the new 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 a treaty
providing for. the abolition of extraterritoriality
in China, the Chinese Government made a request for
the rendition of the New Territories. His Majesty's
Government refused to consider this question in
connexion with extraterritoriality, but intimated
that, if the Chinese Government desired 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
victory was won. The Chinese Government thereupon
reserved their right to raise the question later.
4. In June and July of this year 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 conversa-
t ions with Sir Horace Seymour and the Minister of
State respectively. Copies of the two documents
reporting these conversations are attached (Annex III).
More recently, there has been some Press agitation
in China and Hong Kong, which is now, however, dying
down, 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