"

with his views regarding the desirability of

retaining possession of the New Territories

at least until the expiry of the lease in 1997,

he would like to point out that China was at

that time engaged in a campaign of hostility

against any thing which she considered infringed

her sovereign rights, and that any suggestion that

the alienation of the New Territories should be

perpetuated or extended would certainly arouse

the most violent opposition. In these circum-

stances he was clear that the moment was

inopportune for discussing whether H.M.G. would

desire or be able to retain possession of the

leased territory after 1997/unless something

should intervene to force this issue upon us

in the meantime, consideration of it should be

postponed. His advice was to leave well alone,

and refrain from meeting trouble halfway, or

giving the Chinese any peg upon which to raise

the question.

and

In the F.0. reply to him, H.M.G. were

stated to have no intention of taking any

initiative in regard to the question of the

"

Kowloon lease, but, in view of the certainty

that the question will be raised by the Chinese,

possibly in some extreme form, long before the

expiry of the lease, it has been felt desirable

to ascertain the real value to the Colony of the

territory in question. The F.0. added that it

was impossible to foresee what means would be

available to H.M.G. when the matter was thus

brought to a head by the Chinese, and what

means would be most effective, in whatever Chinese

conditions obtained at that time, to secure

our

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