Henderson's recollection that this view was also

expressed at the Washington Conference in 1921 by

Lord (then Mr.) Balfour on behalf of His Majesty's

Government when he explained the essenti al

distinction to be drawn between the lease of

Wei haiwei, and the lease of the New Territories.

Under the provisions of the Kowloon Extension

Agreement the lease of the New Territories does

not expire until 1997. While therefore the question

of His Majesty's Government honouring their bond

in this matter will not arise for 67 years it is

in Lord Passfield's opinion a matter of doubtful

expediency to allow the idea to be entertained that the policy of His Majesty's Government favours

the early return of this defenseive frontier

territory to China or that a sacrifice must be

deannded of the Colony on the present occasion of

nego ti ati ng a Customa Agreement if China is to be expected to honour her bond in accordance with the

Kowloon Extension Agreement.

5. If the Nationalist Government prove to

be unwilling to accept an Agreement on the lines

now

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