of the New Territories. I incline to agree with
Mr Rogers. It might be that the Chinese Government
might be willing to give some assurances in the
matter under pressure, but to exert that pressure
just now might savour of blackmail. I cannot
imagine the Cabinet thinking this a favourable
moment to attempt to buy rights in the Territories,
except on the possible grounds that they might be got
one
cheap. We advantage in acquiring an extension
of the lease at this early date would be that any
such concession could be asserted against any
future government of South West China, in the event
of the break-up of China into fractional States.
But if the Japanese succeed in establishing a
puppet government in South West China, I doubt if
Hong Kong itself would be tenable, with or without
the New Territories.
On the whole I think that the conditions
are too speculative to justify any consideration
of the renewal of the lease at this date.
I think that we had better ask for F.0.
views on Sir G.Northcote's contentions without
endorsing them in any way.
# Plowell
30.4.38
Jtlalder
304.38
I entirely agree that the present is a most inopportune moment for raising Auquestion, Apart from the political issues, bure is the point that are hope as time goes on to encourage more amore Chinese-controlled enter.
•prise in this area which we
for preference reasons will want to be in the Empire knot in China. I'ne more we can create such vested interests the stronger the support we shallget viten Chine for an
the status ens. I
extension
of