CO129-564-12 Status of leased territories in China 29-9-1937 - 30-10-1937 — Page 7

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reference 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 Dower

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.