CO537-3711 — Page 131

These warnings were without effect on the crowd and tear smoke was then used, which had the desired effect of dispersing the crowd. The police were then able to remove the huts in accordance with their orders. Six persons were later, I regret to state, discovered to have received hurts, five suffering minor injuries and one having an abdominal wound from a bullet, most probably by an accidental ricochet. The last-named, according to latest reports, is now out of danger. I would particularly draw your Excellency's attention to the fact that the police were outside the so- called Kowloon city when they were attacked. Some of the attackers were in- side and some outside the city, but it is impossible to say with certainty whether the casualties referred to were sustained inside or outside it.

6. During the course of the first eviction two individuals were arrested who attempted to intimidate the workmen engaged in dismantling the huts and to incite the squatters to resist the police in the execution of their duty. These two were Chu Pui Tong, chairman of the Kow- loon City Residents' Association, described as a farmer, and Lau Ngai Fu, described as partner in a knitting factory. They were brought before the Kowloon Magistrate's Court on 13th January, and after trial were sentenced each to three months' hard labour for inciting persons to resist the police in the execution of their duty. They indicated that they were going to appeal to the Supreme Court at Hong Kong. It is understood that they have not, in fact, done so. Lau Ngai Fu, in cross-examination, admitted that he had previously been in the 156th Division of the Chinese army, attached to the Political Propaganda Section.

7. You will observe from the facts de- tailed above that the Hong Kong Govern- ment gave ample notice to the squatters and made alternative sites available, and not until court notices had been served and ignored was action taken by the police on 5th January. Moreover, the eviction was carried out on that date without incident. There then supervened the Po On magis- trate's visit to Kowloon city on 7th January, following which a considerable number of squatters returned, encouraged thereto by agitators and by Po On officials. At the same time exaggerated and mis- leading reports appeared in some sections of the Chinese language press, notably in the National Times, which it is understood receives a subsidy from the Kuomintang, the predominant party in the Chinese

2

Government. The consequence was that, when the Hong Kong Government met the challenge to their authority and took steps on 12th January to clear the site again, the police escorting the working party met with organised resistance and were com- pelled to use force. For that the chief responsibility must be attributed to the Chinese language press in Hong Kong and in China, which for weeks past had been sedulously fanning the spark of anti- British agitation and to the provocative action of the Po On magistrate referred to above. I would emphasise in this con- nexion that the Hong Kong police on 12th January exercised the greatest forbearance, as will be clearly seen from the fact that only one person was seriously hurt and one other detained in hospital, four others receiving superficial injuries. All have received, or are still receiving, free medical treatment and maintenance while in hospital. Had the facts been presented to the Chinese public in proper perspective, I do not doubt but that they would have regarded the matters at issue in a calmer and more objective spirit.

8. His Majesty's Government, for their part, also deplore the fact that the incident in question took place while discussions about the walled city of Kowloon were pro- ceeding at Nanking. They regard these discussions as still in progress, and they hope shortly to submit their views to the Chinese Government.

9. The Governor of Hong Kong was kept informed of the representations made by the Chinese Government to His Majesty's Ambassador at Nanking, and His Majesty's Government are satisfied that he has taken, and will continue to take, those representations into account. At the same time His Majesty's Government consider that the Hong Kong Government were fully justified in deciding to clear the area of the temporary hutments, which were endangering the well-being of the com munity at large. They also consider that the Hong Kong Government showed every consideration to the squatters in the measures taken to evict them consistent with good administration and the main- tenance of law and order. In His Majesty's Government's opinion, it would be quite wrong for the Hong Kong Govern- ment, on account of the jurisdiction issue, to refrain from taking such administrative measures in respect of Kowloon city as are necessary in the interests of the community as a whole. As has already been stated above, His Majesty's Government regard the jurisdiction issue as one to be dealt