54145/16/48

Dear Scarlett,

Colonial Office, Church House,

203

Great Smith Street,

S.W.1.

19th March, 1948.

Walled City of Kowloon

1. We have been considering, in the light of the views expressed by the Governor of Hong Kong in his telegram No.298, what might now be said to the Chinese Government, following their intimation that they could not accept any settlement which did not give them jurisdiction, and that there would have to be a public announcement that they would exercise jurisdiction (paragraph 2 of Nanking telegram No.238 of 6th March).

2. The terms of this communication will no doubt require very careful consideration particularly in view of the possibility of publicity at a later stage. We should like to suggest, for consideration, that it should be on the following lines;-

We regret very much to learn that the Chinese Government are unable to accept any settlement that does not give them jurisdiction. We still feel that our proposal for a Garden of Remembrance with joint British and Chinese trustees represents the best solution for the future of this area and one which would reduce to a minimum the need for the actual exercise of jurisdiction and consequently the practical importance of this troublesome question. Under our proposals, the Hong Kong Government would continue to exercise jurisdiction in that area as they have for the past 50 years. But, as already

\P.W. SCARLETT, ESQ.

indicated

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