7.

by the Chinese, or a Japanese force landing in Chinese

territory. If a surrender were made even of the country

north of the line Taipo Ping Shan, it would involve the

surrender of two first-class main roads, which in the hands

of any attacking force, would greatly facilitate any hostile

advance towards the harbour and, as stated above, would

enable such an enemy to bring heavy artillery within range

of the harbour itself.

It may be added that, quite apart from strategic

questions, the Fanling area towards the north of the New

Territory is the only place where suitable training ground

can be found for troops quartered in the Colony.

I agree with the General in his opinion that from

every point of view, including both strategical and tactical

considerations, it would be a very grave menace to the safety

of the Colony to surrender any part of the New Territory.

12. (c) Naval.

The Navy possess a torpedo workshop and range at

Laichikok in the New Territory. In addition there is a

range finding mast on Taimoshan mountain, and another one

further eastward.

13.

(a) Air.

Government has at considerable expense established

an aerodrome base at Kai Tak in the New Territory, as there

was no suitable site on the island itself. This base will

be used both by Imperial and civil aircraft, and from an

air point of view is a vital necessity.

GENERAL.

14. It is my considered opinion that not only is

Kowloon, but the greater part, if not the whole of the New

Territory, absolutely necessary to Hong Kong, both on

economic and strategical grounds. I have no hesitation in

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