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6.

While Great Britain may, and can hold Hongkong, I do feel that the good neighbour policy should be consistently cultivated.

One of China's main post-war policy is national industrialization, and as foreign capital and personnel are welcomed, any effective participation by Great Britain when the time comes, should have the desired results.

7. On 7th August, 1943, I had a somewhat lengthy discussion on the question of Hongkong with Dr. Man Wong, who is Director of the Public Health Bureau of Kwang-Tung, a British subject and graduate. I gathered from him that his superior, Gen. Yu Hon Mou, one time war-lord of Kwang-Tung, was most anxious to secure the return of Hongkong, and as Dr. Wong was also President of the Sun On Merchants Association of Hongkong (the New Territories of Hongkong are in the Sun On District), he and the Association's executives propose to canvas or otherwise work in the Waichow, Tanshui, etc. areas for the return of Hongkong, in the event of a plebiscite being decided at a future conference.

As I am unaware of any one working on behalf of H. M. Government in this connection, I feel this deserves investigation and the adoption of precautionary measures. Obviously, this form of national referendum should be avoided if possible, owing to the illimitable influence of nationalistic feelings when fanned and because of other uncontrollable factors.

The fact that 97% of the property owners in Hongkong being Chinese does not mean that they could be relied upon to vote favourably if given the franchise, because in my view the majority of the property owners are not British subjects.

(Sgd.) Li Shu-Fan.

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