CO537-3707 — Page 165

Proposal

Suggested

by

Brief History

Present Position

Commissioner for Foreign Affairs of Kwangtung and Kwangsi.

Policu,

water, electricity and other public utility services to be provided by Municipal „uthori- tius or Kowloon on request.

4. CONSULATE

COMPOUND. ARCA

to be handed to Chinese JS

official compound for Consul-Guneral Who would be ppointed to replace the

Special Commiss-

ioner for Foreign ..ffairs.

Consul- Genorul, Canton.

Government would be able to accept. He suggested that the area could be enclosed as an official compound or garden and that we could press for the appointment of a Consul- General. The Chinese have been very keen on this proposal (use or the site for office of Special Commissioner) and indicated at one stage that they preferred it to the Garden or Remembrance idea.

The Governor considered this solution less objectionable then No. 3, of which it is a development, but he said that it would still be acclaimed as defeat for the Hong Kong Government. If proposal had to be accepted Hong Kong Government would lease area on nominal terms, retaining administrative functions such as policing, senitation, etc.; the erea should be a consulate compound only and not a public garden as well. It would be essential that the settlement should be accompanied by e joint statement making it clear that both sides were waiving their claims. The Ambassador, Nanking, thought the official compound idee offered the best solution of the jurisdiction issue and agreed that a joint statement would be essential. The Chinese, however, indicated to the Ambassador that the idea of a Consulate General would conflict with Chinese territorial status of the area. At this stage the proposel was dropped in favour of No. 5.

basis.

Later, when the Garden of Remembrance proposal was making. heavy weather, the Ambassador eguin commented favourably on the idea of en official compound. Despite our doubts, he did not despair of persuading the Chinese to agree to a suitable joint statement and he thought the actual exercise of juris- diction could be met by a formula accord- ing 'usual privileges and amenities' while in practice persons committing ofiences inside the area would be handed over

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