CO537-3705 — Page 36

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may feel disposed to a ccept the suggestion

that the park be called the Sun Yat Sen

Memorial Park.

4. At the same time I would ask H.E.

to agree that our two Governments should issue

a joint statement making it clear that this

settlement is a compromise based on common

sense

ase, whereby both sides waive their claims

to the area in dispute;

area

that they do this

because Kowloon-eity is not (repeat not)

*th a dispute between two great powers with

ong tradition of friendship and that

throughout both sides acted in good faith.

5. As a preliminary to an arrangement on

the above lines, it will of course be necessary

to reach an understanding with the Chinese

Government that the squatters still in the

area will be required to move outside it and

that no squatters will be permitted to establish

themselves within the area in future. The

10

Government of Hong Kong will take all proper

steps to provide alternative living sites for those evicted and to ensure that no one with

T

a right to live in Kowloon city is expropriated

without due compensation.

6. You should spare no pains to press

this solution on the M.F.A. If, however, he

should find it inacceptablę you have discretion

15 Jurisdiction

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himen the Game

Land subject & course to paragaths 4 and 5 above)

in the last resort to propose the area as the

site for a Chinese Consulate General in the

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terms prescribed in Hong Kong telegram No. 147 to Ifs for the Colonies.

As you will realise this solution is open to a

risk inherent in the fact that the Chinese

Government have shown no sign of wishing to

appoint a Consular officer to Hong Kong.

We may

left in the end with a Chinese Government