CO537-4841 — Page 20

delivery of the note separately as soon

possible.

as

(b) Recognition will not affect ownership of

property which now belongs to the Republic of

China, but immediately upon recognition, the

Communist Government will automatically be

entitled to control and take possession of the

in itong kongo

Therefore, the

property of the Republic

Communists will not be required (as suggested in your paragraph 4) to prove their legal title to

The

such property in the courts of the colony. property of the Republic will include any share-

holdings in quasi public Corporations and other companies, Therefore upon recognition,

the

Communist Government will be entitled to exercise

such control over these corporations and companies

formerly

as was

x/enjoyed by the Nationalist

formex/en

Government.

(c) In general, recognition will not affect

Lawfully acquired

ishelypr

any additional private property and legitimete

rights. Any demand for extradition must be

considered on its merits when it is made in the

light of the Extradition Genvention, Article XXL of the Tientsin Treaty, 1858, and the

ChiauL CHIVEST

Hong Kong Extradition Ordinance. 3.If the

A

·N.P. E

situation eventually arises in which the

Communist Government refuses to accept juris- Lsuch an diction of Hong Kong courts in eeh matters, you will no doubt refer to me for further advice I fully appreciate that from the political angle, difficult issues may arise and court decisions against the Communists' interests will, no doubt, be ascribed by the Communists to executive pressure and will be regarded by

them as evidence of British hostility.

Unfortunately/

there mentioned

above

NOTHING TO BE WRITTEN IN THIS MARGIN.

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Wt.20279/186 55.000 7/49 A. & E.W.Ltd. Gp.685

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