TNAG-1243-FCO40-1557-Future-of-Hong-Kong-1983 — Page 23

NOTES ON THE RETROCESSION OR FORMER BRITISH CONCESSIONS AND LEASES

HANKOU

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1. The British concession at Hankow was overrun on 4 January 1927,

and thereafter Chinese Nationalist authorities assumed radio control of the area. Negotiations on the future status of the concession began on 12 January, were broken off briefly by the Chinese in protest at a British decision to send troops to Shanghai,a nd concluded in an exchange of notes on 19 February 1927.

2. It was agreed that the British Municipality would be dissolved on 15 March 1927 and administration would be handed over to a new Chinese Municipality. The Nationalist Government would thereupon set up a special Chinese Municipality, modelled on that of the Special Administrative District, under regulations to be communicated to the British Minister. The regulations would remain in force until the other foreign concessions of Hanko were amalgamated into one municipal district. The Chinese also gave an assurance that there would be no discrimination against British interests in the administration of the new district.

3. Under the Regulations, the municipal administration was to be headed by a Director appointed by the Chinese. He chaired a council of 7 members, consisting apart from himself of three Chines and three British members.

KIUKIANG

1. Agreement on the future of the British Concession at Kiukiang was reached in an exchange of notes dated 2 March 1927. Britain undertook to cancel the British Municipal Regulations with effect from 15 March, and to hand over unconditionally the administration of the concession area. The Chinese paid $40,000 in compensatin for losses incurred during the disturbances in January and confirmed the existing bund footage licenses issued by the British for a period of ten years.

WEIHAIWEI

1. Weihaiwei was leased to Britain under the convention between Great Britain and China concerning Weihaiwei signed on 1 July 1898. The lease was to run "for so long a period as Port Arthur shall remain in the occupation of Russia". Japan took over Russia's lease of Port Arthur in 1905, but negotiations for the rendition of Weihaiwei did not begin until 1922. They were finally concluded in 1930 and Weihaiwei was returned to China under a Convention signed on 18 April 1930.

2. Under the Convention of 1930, the 1898 Convention was abrogated, Britain agreed to transfer the administration and all public properties in the territory to China without compensation. After assuming administration the Chinese agreed to maintain as far as possible existing regulations including land and house tax,

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