(g) paragraph 2 under heading "Exchange of Notes" presents

greatest difficulty (apart from the major objection referred to in paragraph 3 above). I am advised that while there might be no insuperable legal difficulty in devising machinery, practical difficulties would inevitably arise - e.g. where sedition or similar offences were involved, In such cases Trustees would probably disagree and, while residents of China would be those most likely to cause this kind of trouble, they would be the very ones not. amenable to Hong Kong jurisdiction. It might be of some use to provide both in any agreement with the Chinese and in the by-laws that, in view of the purpose for which the Garden had been established, no political activity of any kind would be permitted in it:

(h) For the last word "domicile" the words "ordinary residence"

would be preferable:

(i) As in (f) above, Hong Kong legislation would be necessary

with reference to para 2, also

5. It is not proposed to take any decisions on proposal until the opinion of the Law Officers is known but, to assist further consideration, I should be grateful for your early views by telegram on proposals generally and on particular points raised above.

6. Before the Chinese compromise proposal was made the Minister of Defence had been consulted as to the effect of the exercise of Chinese jurisdiction in Kowloon City on military requirements for the defence of Hong Kong and had replied that for the reasons set out in the telegram addressed to the Chiefs of Staff in London by. Commanders-in-Chief Committee Far East on the 29th April (SEAWS 851), a copy of which you have doubtless seen, it is inconsistent with those requirements. He has been informed of the present Chinese proposal involving a partial surrender of jurisdiction to the Chinese, and that your considerations are being invited.

PART II.

The Government of the Republic of China and His Majesty's Government in the United Kingdom have been considering an amicable and reasonable settlement of the controversy which has recently arisen in connection with the City of Kowloon, Both Governments, having throughout maintained their claims in good faith, consider that the issue does not warrant a dispute between two peace-loving peoples with a long standing tradition of friendship.

With this in view the two Governments have mutually agreed that the area in which the City of Kowloon is situated should be converted into a garden of remembrance, to be called the Chung Shan Park and to be dedicated to the sacred memory of the Chinese and British nationals who lost their lives in the common cause against the Japanese aggression, It has now also been agreed that the safe- keeping and administration of this garden of remembrance should be entrusted, under the rules to be mutually agreed, to two trustees to be appointed respectively by the Provincial Government of Kwantung and the British authorities in the leased territory of Kowloon, and that the Chinese trustee should have an office in the garden.

It is hoped that the inspiration of this sacred trust will ensure its undisturbed peace and tranquillity and that the spirit of remembrance to which the garden is dedicated will be perpetuated.

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