CO129-560-17 Kowloon- expropriation of Chinese property 6-1-1937 - 4-9-1937 — Page 26

to which was made in the Canton Gazette, a semi-official

English language newspaper published daily in Canton,

and the Hong Kong press in May last. The Chinese contention

seemed to be that mining rights in the New Territories

were not ceded by the Chinese Government when they

concluded the lease agreement for these territories, and

that therefore the Government of Hong Kong has no power

to grant licences in respect of mining in this part of the

Colony. In August he also raised the question of the

granting of licences to Japanese trawlers to fish in Hong

Kong waters, and, on September 7th asked me to protest

to the Government of Hong Kong on his behalf against the

use by a Japanese warship of the waters adjoining the leased territories for an attack on Chinese Customs cruisers (see

my telegram No. 63 of 8th September). In general, his line

seems to be that the New Territories, and Kowloon City in

particular, are no part of the Colony proper of Hong Kong,

and that China has by no means forfeited all her rights, as

ground landlord, in these territories, and the adjoining

waters under the lease agreement.