CO537-3711 — Page 78

territory on the Kowloon Promontory, exclusive

of Kowloon City, as would be required for

military and naval purposes.

4. Sir C. MacDonald, Her Majesty's

Representative at Peking, was then instructed

to inform the Yamen, amongst other things, that

the Chinese authorities would be required to

concede all the land which would be necessary

for the defence of Hong Kong. At the same

time the Minister was advised that we required

no more than what from a military point of

view was necessary, but all of that should be

obtained, whether or not it included Kowloon

City.

5. To this demand the Yamen Ministers replied

that in none of their recent leases had they

been compelled to sacrifice Chinese dignity to

the extent of withdrawing their permanent

officials and that they felt unable to do so in

the case of the City of Kowloon. Her Majesty':

Minister then suggested that the Chinese

officials should be allowed to remain until

practical proof of the unfeasibility of the

system was afforded. Sir C. Macdonald

was instructed that the possession of the town

was essential and that some arrangement should

be come to whereby the Chinese officials

remained undisturbed, with nominal English

subordinates by their side to do the work,

but subject to the paramount British

authorities.

6. In reply to these instructions, H.M.

Minister reported that the Chinese Government

had very great objection to granting so great

an increase of territory as was desired, but

the cession of the city of Kowloon was the

principal/

NOTHING TO BE WRITTEN IN THIS MARGIN.