TNAG-0642-FCO40-790-Kowloon-Walled-City-and-aircraft-safety-in-Hong-Kong-1977 — Page 41

CONFIDENTIAL # Z

Article IV of the Peking Convention

4.

2 -

The controversy surrounding the Walled City originated in Article IV of the Convention signed between China and Britain at Peking on 9th June, 1898 concerning the extension of Hong Kong Territories. The

Article stipulated that:-

"It is at the same time agreed that within the City of Kowloon

the Chinese Officials now stationed there shall continue to exercise jurisdiction except so far as may be inconsistent with the military requirements for the defence of Hong Kong. Within the remainder of the newly-leased Territory Great Britain shall have sole jurisdiction." (1)

Early British Opinion Towards the Article

5.

6.

From early correspondence between the then Secretary of State and

the then Governor of Hong Kong (2), it appears that little importance

was at first attached to this particular clause, possibly because it did not pose a threat to the Colony's security (3).

There is no clue as to who was responsible for the inclusion of this article, but the prevailing theory (4) is that the Chinese

Government had pressed upon this as a means of "Keeping face" and

maintaining a nominal hold over part of its leased territories.

Analogous treatment can be found in the treaty between China and

Russia concerning the lease of Port Arthur on 7th May 1898 in which Kinchow (), a City situated within the leased area,

romained under Chinese administration.

Change in British Attitude

7.

This particular clause was apparently received by British merchanto im

the Far East with some consternation, as they feared that this would

affect their trade. The existence of Chinese officials in the City

who could continue to exercise jurisdiction and the accompanying

presence of Chinese "hen-of-war, merchant and passenger vessels"

using the "existing landing-place near Kowloon City" to "go and lie

there at their pleasure" was seen to involve the possibility of the

Chinese continuing to levy tax and duties on the junk trade, with

the result that Hong Kong-based merchants would not be able to

maintain a free hand in trade (5). This fear was reinforced when

immediately after the signing of the Convention a dispute betweez.

the two nations arose as to whether the Chinese Maritime Customs

Stations should continue to remain within the newly leased British

waters.

CONFIDENTIAL # 2