1

to find whatever compromise solution

acceptable to both sides is least

objectionable from our point of view. To

this end previous proposals have been reviewed

here.

3. The proposal least objectionable from our

point of view and which might stand any chance of

! acceptance by the Chinese seems to be that

area.

area should be handed over for use of a Chinese

Consul-General as residence or office or branch-

office with compound attached, whole area being

enclosed for this purpose and general responsibility

for what takes place within therefore resting on

practice the Consul-Genera 1. Accepted international prosedure

for premises occupied by Consular representatives

would then apply to conduct of persons within the

This would imply that disciplinary matters

would be dealt with by the Chinese, serious crimes by

the Hong Kong Police and Courts. It seems unlikely

that Chinese would agree to accept a lease of the area

from the Hong Kong Government and it is, therefore,

contemplated that, arrangement might possibly be

made by international agreement which would not

refer to tenure of the area, but would open with

some such preamble as has already been suggested by

us and accepted by the Chinese - viz. the opening

sentences of part II of my telegram No. 691.

4.

Chinese may well not agree to appointment of

Consul-General. In that event our best course

might be to fall back on substantially the same

proposal substituting for "Consul-General", "representative

of Government of China" or even Mr. Kwok's present

designation, but adding that the official in question

would have consular status, privileges and immunities.

This arrangement would provide a recognised standard

/according

(249/50)

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