CO537-3709 — Page 30

COPY

Aide Memoire from

Chinese

Vice Minister for Foreign Affairs.

CONFIDENTIAL

€/19(2)

In connection with the request made by the Ambassador in his note dated March 11th for the duty-free replacements of essential articles destroyed or damaged in the Shameen incident of January 16, I must point out that it was only after strong pressure had been brought to bear on the competent authorities that the concession was made to members of the staff of the British Consulate-General in Canton. According to practice, such a special privilege is accorded to these officials only upon their arrival. As for private individuals or commercial firms, there are serious obstacles to granting such exemption. However, I have again called my Minister's personal attention to this matter and asked for his intervention. It is expected that I shall be able to inform you in due course of a satisfactory arrangement.

A complete report is now available on the investigations conducted by the representatives of this Ministry and the Ministry of Interior into the above-mentioned incident. The facts show that the Chinese authorities concerned had taken what were considered to be the necessary precautions immediately after the Kowloon City incident when they foresaw what might follow in its wake. In the course of the disturbance more than 100 arrests were made, of whom 26 are still held in custody. As soon as their trials are completed, due punishment will doubtless be meted out to those who are found guilty. The local authorities can therefore not be charged with any lack of due diligence in the matter.

In spite of the absence of responsibility on the part of the Chinese Government, however, this Ministry has been carefully checking the losses sustained by the parties concerned and is prepared to recommend to the Government an equitable solution of the question. But, as you may well understand, if this recommendation were made prior to the settlement of the Kowloon City affair, it would meet with serious difficulty and the chances of its being accepted would be very slim.

You are perhaps also aware that the position of our Special Commissioner in Hongkong is not at all comfortable as he has been charged to pacify a large number of residents of Kowloon City who have formed organizations among them- selves and are found both inside and outside in City are.

It is hoped that the British Government will forthwith reach a decision on the formula for the settlement of the Kowloon City incident suggested by my Minister in his conversation with the Ambassador on March 3rd and that a reply will soon be forthcoming.

8/ April 1948

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