CO537-3706 — Page 183

Wt. 23364/665. 8/47. 50,000. S. & S. Ltd.

54175/46/48

C. O.

Mr. Mayle

10/2/48

In

reference

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Mr.

Mr.

Mr.

Permt. U.S. of S.

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Secretary of State:

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Your Reference.

DRAFT. ANNOUNCEMENT

KOWLOON

CITY

Revised draft statement based on draft in Ambassador's telegram No.161 to the Foreign Office.

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FURTHER ACTION.

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The Government of the Republic of

China and His Majesty's Government in the

United Kingdom have been considering an

amicable and reasonable settlement of the

controversy in connection with the Old City

of Kowloon. They have sought a solution

whereby this question would no longer be a

source of potential danger to the relations

which exist between them and the two peoples.

The Chinese Government maintain that

they have a good claim to jurisdiction

within the Old City of Kowloon under the 1898

Convention. On the other hand, they

recognise that since the area concerned

comprises only 62 acres and is some

20 miles across the frontier from China, the

exercise of such jurisdiction on their part,

if their claim were conceded, would give

rise to considerable practical difficulties.

The solution which has been reached

and which, in the view of both Governments,

makes