CO537-3705 — Page 103

still in progress and they hope shortly to submit their views to the Chinese Government.

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The Governor of Hongkong was kept informed of the representations made by the Chinese Government to His Majesty's Ambassador at Nanking, and His Majesty's

overnment are satisfied that he has taken, and will ontinue to take, those representations into account. the same time, His Majesty's Government consider at the Hongkong Government were fully justified in deciding to clear the area of the temporary hutments, which were endangering the wellbeing of the community at large. They also consider that the Hongkong Government showed every consideration to the squatters in the measures taken to evict them consistent with good administration and the maintenance of law and order. In His Majesty's Government's opinion, it would be quite wrong for the Hongkong Government, on account of the jurisdiction issue, to refrain from taking such administrative measures in respect of Kowloon City as are necessary in the interests of the community as a whole. As has already been stated above, His Majesty's Government regard the jurisdiction issue as one to be dealt with separately if necessary. In this connexion His Majesty's Government cannot but regret the stand- point adopted by the "National Times" and the activities of the magistrate of Po-On district referred to above, which were, they feel, not conducive to a just and ami cable settlement of the matter.

I shall be grateful if Your Excellency will inform your Government of the facts of the case as set out above and will represent to them. the desirability of taking steps to ensure that they are placed before the public in China. If this is done, I feel confident that a satisfactory solution will readily be found, and that the friendly relations which exist between our two countries will thereby be strengthened.

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[Ends].