CO537-3711 — Page 79

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principal difficulty.

He said that with the

Chinese it was a question of preserving their dignity and "saving face" and that the suggested

arrangement would not be agreed to be the Chinese Government at that moment, although it

might be effected later on. He pointed out

that the Russians had agreed to the Chinese

administration of Kinchow City, and suggested

that they probably intended to revise the

arrangement at a later date.

7. On May 2nd, 1898, the Yamen agreed to grant

a lease for the Hong Kong extension, subject

to several conditions, one of which was that

the Chinese Government's jurisdiction in

Kowloon City should remain in the hands of their

officials unless the military arrangements for

the defence of Hong Kong required otherwise.

A draft convention, which included an

Article in the sense of the preceding paragraph,

was then agreed with the Chinese authorities.

8.

9. On June 6th, 1898, the Colonial Office

asked that Sir C. MacDonald should endeavour to

procure some modification of the provision regarding continued Chinese jurisdiction within

the City.

They pointed out that the town

would be well within the area of the lease, that

difficulties would arise if justice continued

to be administered there exclusively in Chinese

fashion, and suggested that the words might run "Chinese jurisdiction shall continue

concurrently in Kowloon City, so far as is not

inconsistent with military requirements, and

with European law and custom".

It was added

that the Yamen could be given an assurance that

it was not intended to interfere with the position

and/