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CONFIDENTIAL

si fact

Chinese propaganda had Zachieved only a very

limited success because the population of

Hong Kong included a large proportion of people

who had fled from China because of their dis-

like of the régime there.

12.

Hong Kong was different from our other

overseas territories, because the New Territories

were held under a 99-year lease. This prevented

us from advancing the territory to independence

as we had done with so many other overseas

territories.

We could bring about more parti-

cipation by the people in the management of

their own affairs but the territory would have

to remain a colony. The Chinese were in

practice content with this. Our task was

therefore to hold the position while enforcing

the rule of law. Mr

Aichi said that the

Japanese Government understood the difficulty

arising out of the lease but were concerned

about the future of Hong Kong. When the lease

expired would the New Territories automatically

revert to China? Mr. Stewart replied that the

New Territories would become Chinese again.

Hong Kong and Kowloon would not be viable as a

To

separate entity./Mr. Aichi's question about

what we were planning now, it was impossible

to frame an answer. Public discussion now

could have unfortunate results. We did not by the love know what kind of China would exist that He base expired

dato

In the present state of uncertainty we

must concentrate on keeping Hong Kong as orderly

and as prosperous as we could.

CONFIDENTIAL

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