3.

In general, I am advised that, if there is a dispute,

the question of the authority of an agent to take possession

of State property on behalf of Communist Government

will be one for the Courts, and there would seem to be

4.

no reason for the Hong Kong Government to interfere

unless and until a breach of the peace was threatened.

The question in a particular case whether a person

is a duly authorised agent of the Communist Government

will be one to be decided by the Courts in accordance

with local law and rules of evidence. I note from

your telegram No. 9, paragraph 8, that questionnaire

from Chief Justice on recognition may be expected

shortly.

5.

The question of agent who may take possession

of property is quite distinct from appointment of a

quasi-diplomatic representative to replace Kwok.

SECER.

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