34 END
in sixty nine years give rise to a problem of considerable
In view of the great development, however, of
difficulty.
international arbitration and of the extent to which
international relationships are governed by the League of
Nations and the provisions of the Covenant, it is hardly
conceivable that His Majesty's Government would be able to
keep possession by force of the New Territories under the
plea of economic necessity. The solution of Hongkong's
difficulty and the ultimate future of the New Territories
would appear both to be matters for negotiation with the
Chinese, and until a favourable opportunity for initiating
such negotiations has arisen it seems essential to avoid
any action which could be construed as an intention on our
part to violate our obligations towards China.
5. With regard to paragraph 4 of the draft despatch
enclosed in your letter under reply, Lord Cushendun considers
that the question of the amount of revenue which should be
devoted to the development of the New Territories does not
appear to be one which calls for any comment from him except
in so far as the considerations advanced in the last sentence
of the preceding paragraph may be held to have some bearing
on the point at issue.
I am,
Sir,
Your obedient Servant,
Grouge Mounsey.