CO537-3705 — Page 50

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

Cypher (0.T.P.)

IMMEDIATE.

FROM HONG KONG (Sir A.Grantham),

D, 3rd February, 1948. R. 3rd

**

警警

X XI

14.00 hrs.

VEIVED

948

109

།

EGISTRY

No. 147 Secret.

office.

Addressed to 9, of 8.

Repeated to British Ambassador Kanking No.44.

Nanking telegram No.116 to Foreign

Kowloon City.

113

I am still of the opinion that the park proposal is boot and that proposal for enteblishment in Kowloon City of office and (corrupt group) frontier residence for olther the Special Commissioner or the Consul General would be acclaimed as a defeet for us with a serious effect on responsible Chinese opinion in Hong Kong (see my telegram 62 No.80 repeated to Nanking as No.26). As to which is the

less objectionable, the Consular proposal has its advantages. On the other hand it certainly would be interpreted aa a means of BRving our face in what was otherwise a defert.

105

2.

Least objectionable form the proposal could take would be for Hong Kong Government to lease or (grant) Kowloon City area to the Chinese Government on nominal terms for so long as it 523 used as a Consulate. In this connection, it should be noted that foreign Consule are not (repeat not) granted by this Goverment lend buildings on terms any different from private persons or fime.

3.

In any case, the Hong Kong Government not (repeat not) merely Municipal authorities as mentioned la Foreign Office telegram No.75 to Nanking, should have the normal administrative functions of policing, sanitation, eto.

Az

I do not (repeat not) like the idea of

a public perk and buildings and a Consulate. This would. almost certainly lead to further disputes. It ahould be one or the other.

5

Functions of the Consul should be laid down as in my predecessor's confidential despatch of 29th July, 1946.

Ба

If a settlement has to be agreed on the above lines, it is of paramount importance from the local point of view that there should be a joint statement by both Governments which makes it clear

(a)/

Page 50Page 51