CO129-609-6 Future policy- Reuters reports on situation regarding Kowloon evictions 1-1-1948 - 31-12-1948 — Page 3

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Th. Mayle Mr. W. 1-J-WALLACE - 535

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BRITISH HOPE FOR EARLY SETTLEMENT OF KOWLOON DISPUTE

NANKING, MON-- A BRITISH EMBASSY SPOKESMAN SAID HERE TODAY

THAT HE HOPED TT SEE A SETTLEMENT WITHIN THE NEXT FEW DAYS OF THE KOWLOON ISSUE WHICH LED TO ANTI-BRITISH DEMONSTRATIONS AT SHANGHAI AND CANTON, WHERE THE BRITISH CONSULATE WAS DESTROYED BY FIRE.

THE DISPUTE AROSE LAST MONTH WHEN A NUMBER OF CHINESE WERE EVICED FROM CONDEMNED HUTMENTS IN KOWLOON ON THE MAINLAND OF HONGKONG COLONY

A CHINESE FOREIGN OFFICE SPOKESMAN WOULD NEITHER CONFIRM NOR DENY THAT NEGOTIATIONS, WHICH ARE STILL PROCEEDING BETWEEN THE BRITISH AND CHINESE GOVERNMENTS, HAD REACHED THIS STAGE BU ADDED HE HOPED IT WAS SO.

NO FURTHER PROGRESS HAS BEEN MADE OVER THE CANTON INCIDEN AND BRITISH AUTHORITIES ARE STILL AWAITING THE CHINESE GOVERNMENTBJS INVESTIGATION REPORT WHILE CHINESE OFFICIALS ARE UNABLE TO GIVE ANY INDICATION AS TO WHEN IT WILL BE COMPLETED.

BRITAIN AND CHINA HAVE ALREADY EXCHANGED NOTES ON THE

INCIDENTS. REUTER END9;..

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