CO537-3706 — Page 221

NOTE ON NANKING TELEGRAM No. 149 of 9.2.1948.

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The more I look at this the more I am convinced that it would pay us to revert to the original Foreign Office proposal in the last paragraph of 110 on -/47, viz:-

(a) we agree for the future to accept the principle that the

Chinese have jurisdiction in the Kowloon Walled City under the 1898 agreement;

(b) the Chinese undertake not to press for de facto exercise of

jurisdiction during the remainder of the lease;

(c) the Walled City then to become a Garden of Remembrance under

the care and control of the Hong Kong authorities;

(d) an Advisory Committee of British, Chinese, and other ex-enemies of Japan to be set up to advise the Hong Kong Government on the matters arising; and

(e) subject to acceptance of the foregoing, Hong Kong to be asked

to consider favourably the release of the two prisoners.

бо

12th February, 1948.