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10.

from the Chinese but also from other Powers, not excluding the

U.S.A. These Chinese would focus their discontent on us and

could make HONGKONG the "chopping block" for every grievance

they could trump up and exploit. Incidents with no local

connection whatever with HONGKONG, such as trade disputes

involving our nationals or their employees or even any foreign

interests in CHINA or Chinese interests in the Empire, could

be related to HONGKONG by unscrupulous politicians and

agitators making use for their own ends of distortions based

on a nationalistic interpretation of the "San Min Chu I". As

in the past, Chinese agitators with the connivance of a

nationalistic and revolutionary Government and of a people bent

on short-cuts to power would persuade themselves that the

British Empire and its Colonial Policy was the main factor

preventing the national and rightful development of the new and

independent CHINA enjoined on the Chinese by the Testament of

Dr. SUN Yat-sen. Old grievances connected with the former

Treaty Port system would be transferred to HONGKONG, the British

would figure in Chinese propaganda as the "Nigger in the Chinese

wood-pile" and "British obstruction" would serve to explain their

own faults and failures.

Experience shows that foreign traders

and others including Americans would be only too pleased to see

"British Imperialism" serve as the lightning conductor in a

storm of hatred which would otherwise involve them.

This is not a fanciful picture. The British Empire

whar

itu

has too often been forced to defend in CHINA common European

principles based on right and justice, treaties, International Law

and modern trade usages in the past not to make us realize that we

will still be exposed to attack in the post-war World as the

protagonists of "Imperialism" in Pan-Asian circles. The retention

of HONGKONG will undoubtedly render us much more open to immediate

attack and serious friction with CHINA in the post-war period.

The risk must be faced and clearly understood.

Would we not avoid a great deal of trouble for

ourselves and succeed in making firm and grateful friends of the

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