CO537-3705 — Page 23

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The draft telegram now submitted, which has been agreed with the Foreign Office, will give the Governor reasons why his proposals cannot be accepted, quring him the opportuantes to make further representations

The general question of the Chinese claim to jurisdiction in Kowloon Walled City will require a good deal of further consideration and negotiation with the Chinese. Meanwhile, the telegram agrees that we should not entertain the Chinese suggestion that the area of the City should be turned into a public garden containing the office of a Chinese official. The Governor is still in favour of the creation of a park (87) providing that it remains under the control of Hong Kong and the Chinese have no official status in it, but there is a further suggestion made by the Consul-General, Canton, (83) that the site should be given over entirely to the Chinese for the erection of a Consulate-General. This alternative is left for further consideration.

I am sending forward with this the paper relating to a Question which Sir Gifford Fox is to put to the Foreign Secretary on Monday next asking for a statement.

Sr.

30th January, 1948.

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