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Hong Kong on their side would announce that they would compensato any persons evicted who could establish a valid legal claim to residence in the area of the walled city.
4.
I undertook to put this solution to you "[grp.s undec.] provided:
(a) That Vice-President, Prime Minister and the Minister for Foreign Affairs would accept plan if confirmed by us and
(b)
that the Chinese. Government would, during the next few days, damp down the agitation so as to give a chance for its consideration.
3. All three agreed, but the Minister for Foreign Affairs added a plea that His Majesty's Government would consider advocating clemency towards the two persons convicted of a breach of the peace. He pointed out that, as the Chinese Government had publicly claimed jurisdiction over the ancient walled city of Kowloon, the two convicted persons were acting in defence of what they believed to be China's rights. I replied that the matter was probably still sub-judi ce as the two men might have appealed, but I promised to convey this plea to you. (I do not wish to imply that I support the plea in any way).
6. The Vice President of the Republic suggested that a semi-official statement be issued to the effect. that the Kowloon question had been discussed between us on a personal basis, and that points of view seemed to. be converging. I said that I saw no objection to the issue of an anodyne statement on these lines.
17.
I would be glad to know if you would be able to accept a solution of the problem on lines of the third paragraph above. I fully realise that the present unsatis factory situation is the result of wilful inflaming of the whole question by the Kuomintang, but the fact is that the Chinese Government have allowed themselves to be pushed into. a. position where face is involved.
8. I propose to take up with the Minister for
Foreign Affairs the attitude of the Kuomintang paper National Times in Hong Kong and the activities of Poon magistrate (see Hong Kong telegram No. 8).
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