CO537-3705 — Page 104

Communicated by Dr. Tuan (Chinese Embassy) 26th. January, 1948.

In evicting Chinese residents from the city of Kowloon, the Government of Hong Kong have pased their action on grounds of sanitation and fire prevention. On the other hand, the Chinese Government have maintained that,in accordance with treaty provision,China retains jurisdiction over the city of Kowloon.

Having given careful consideration to their respective positions and in view of the incident referred to apove, the Chinese and British Governments have agreed upon the following points: A. The entire area of the city of Kowloon shall be turned into a park to be placed under the charge of the local Office of the Chinese Special Commissioner of Foreign Affairs for Kwangtung and Kwangsi (now in Hong Kong), which shall be located in the park. The Chinese Government shall undertake to settle all valid land claims in the said city.

B. Police,water,electricity, and such other puolic utility requirements as may be needed, will be provided at any time by the municipal authorities of the Kowloon leased territory, when so requested by the said Office.

C. The municipal authorities of the Kowloon leased territory shall provide alternative housing accommodations, for those who have peen rendered homeless, as large as the result of the forciple demolition of their dwelling addings inside the city of Kowloon.

Apart from these points of settlement, there should be understanding,first, that the Hong Kong Government undertake to make adequate compassionate grants to the Chinese residents who have sustained injuries in consequence of the Hong Kong police action on January 12th 1948 inside the city of Kowloon; and, secondly, that the Hong Kong authorities undertake to effect immediate release o of the two Chinese residents arrested on the 5th January in the city of Kowloon.