Secretary of State.
Kowloon Dispute.
There has been difficulty in reaching an agreed settlement amongst the British authorities concerned, since both we and the Colonial Office are equally
volved at this end, while our Ambassador at Nanking and the Governor of Hong Kong see the problem from a different angle at the China end. Proposals and counter-proposals have been telegraphed to and fro, while the Chinese make frequent representations to us pressing for a settlement.
In order to clear the position, China Department have at my request prepared the attached paper, on the basis of which we hope to reach an agreed solution with the Colonial Office. I think a ministerial decision will probably be required, since it may otherwise be difficult to reconcile the conflicting views.
A copy of this paper is being sent to the Colonial office, who are being invited to discuss it with us as soon as possible. Meanwhile the whole position is being studied by our Legal Advisers.
(9ga.) M.E. DENING
4th February, 1948.
Page 45Page 46