CO537-3705 — Page 4

Not yet avculable. Now im

-

So

Mr. Seel

There

You will have seen from the recent telegrams that the eviction of squatters from Kowloon City has had unfortunate results. is good reason to think that this is due to political propaganda. It is not so clear whether the Chinese Government itself, which has made representations to us, is the instigator, or whether the Kuomintang Party as such, or the so-called "Revolutionary Kuomintang Party" in Hong Kong is responsible.

It is unfortunate that the police had to use tear gas and to fire warning shots when they were attacked by a crowd with stones outside Kowloon City on their way to remove some huts which had been re-erected in the city. It is still more unfortunate that one of the warning shots should have severely wounded a Chinese as the result of a ricochet. But these are results which must be expected when crowds are incited to attack and impede the police in the execution of their duty and the blame rests with the agitators and not with the police themselves. The removal of the huts was, of course, a normal administrative measure necessitated by the risk of fire and disease, and there could be no justification for acceding to the Chinese demand to refrain from

taking any further action that may be necessary, in the interests of law and order, against the squatters or those who incited them.

Following a call by the Chinese Minister on Mr. Dening of the Foreign Office yesterday afternoon, when the former made representations on the lines of No.15 on this file, the Chinese Ambassador asked to see Sir Orme Sargent at

5 o'clock to-day, and Mr. Wallace and I went over to the Foreign Office this morning to assist in preparing a brief for Sir Orme Sargent. A note of our discussion is at (14) and a copy of the brief which was prepared is at (16). In sending this brief forward, Mr. Scarlett of the Foreign Office proposed to mention, in his minute, the three points referred to in the post-script to my note at No.14.

The reply to be returned to the Chinese Government's official representations made through our Ambassador at Nanking on the subject (paragraph 2 of No.13) will be considered with the Foreign Office when the result of the Chinese Ambassador's visit to-day is known. In the meantime, the Governor of Hong Kong will be aware that his action is supported here from a telegram sent to Nanking yesterday and repeated to Hong Kong, describing the firm attitude which Mr. Dening took up with the Chinese Minister when the latter called on him yesterday.

I am having prepared in the Department a comprehensive memorandum dealing with these matters, including the complicated question of the Chinese claim to jurisdiction within the Walled City of Kowloon, for future use and reference purposes. We shall no doubt be getting enquiries

(19)

from