Bong

Bong.

434

Government House.

It would be very undesirable to have our watersupply in foreign

territory. Also the Military establishments which are a curse

to the island must go over to the mainland and the only sites

Luitable for most of them are in the New Territory.

If we could get a permanent cession of the New Territory

or even of some part of it- though I think that the Kilitary woulė

that we must have all of it for defence reasons- in return for

ihalwel we should make a fine bargain,

The trouble is that in present circumstances no such bargain can

be effected.We should surrender Weihaiwel to the Peking Government

would probably be wiling to cede the New Teritory to us, esp-

cially if we paid them a little money, but they have no power or

nfluence in the South and "President" Sun and the Cantonese

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jould refuse to recognise the cession and would use it as another

Acs to beat them with and probably try to cause disturbances or

bycott our trade or otherwise make themselves unpleasant. If these

is ever a Government of the whole of China again - and I doubt

hether that will come for many years- we might do a deal on the se ines but that means retaining Weihaiwei for a long time.

The only real solution would be to recognise the southern Govern- ent as at least partially independent. I return for such recog- ution I believe they would cede us the leased territory but that

28 a question of politics which are too higă for me.

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Personally, I believe that we shall have to come to separate recog-

ition of the Southern Government sooner or later. I doubt the

sibility of Sun getting power in the North and there is no posa- llity whatever of the present Peking crowd getting control of

the south, wu Pei Fu has been a disappointment. He will never unite

+

loa and there seems to be no chance of anybody else doing so

thin a reasonable time.

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