(90)
34
On the first of these points the Foreign Office are at the moment in the position of
"examining the Chinese demand", and propose to have a further discussion with ourselves and the Admiralty (the latter having shown that they are keenly interested in the matter). I should wait for the Foreign Office to disclose their provisional attitude.
On the second point, the Foreign Office draft
Note includes the following words:
"(2) Chinese nationals and companies shall have the right to acquire and hold rights of all kinds in real property in the territories of His Majesty on the same conditions as nationals and companies of His Majesty subject only to the following special provisions". (Then follow three provisions
(1) explaining that companies not incorporated in the United Kingdom require a licence to acquire freehold property in England which is seldom refused;
(2) In certain West Indian Colonies foreign nationals and companies require a licence from the local Government to hold freehold property;
(3) Excluding from the arrangement the matter of the acquisition of real property in China by Indians and vice versa, which it is stated will be a matter reserved for the full commercial treaty which is eventually contemplated with China.)
There are restrictions on the freedom of Chinese (and other orientale)-and other non-Europeans to acquire freehold property in two Colonies in particular which, if insisted upon, will run counter to this proposed undertaking: — V13:
(a)
The Peak district in Hong Kong is reserved in fact by means of a requirement that the consent of the Governor in Council must be obtained. Hitherto except Sir Robert Hofung) this provision has been deliberately used for the purpose of preventing Asiatics(from establishing residences on the Peak. It is, however, inconceivable that that situation can be maintained, and we need not contemplate that the proposed Note would be incompatible with our post-war position in Hong Kong.
(b) In Kenya there is a special policy of reservation of the Highland districts to Europeans. That difficulty has been discussed with the Foreign Office, and in pursuance of a request made to us, Mr. Seel has drafted the attached letter to Mr. Ashley Clarke. I suggest that the letter should go, and that then we should consider the question further so that we may be prepared to meet any Foreign Office suggestion resulting from the letter.
Berent.
19.11.42.
one.
Kles.
20/41/42.
The Kenya point is a very important If the draft note was adopted in its present form it might land us in serious political difficulties.
I
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