No. 9
16-7
X
x/
of resuscitating the abortive negotiations
for a commercial treaty.
Hong Hong would,
under that draft, have been required to make
certain concessions to China and to Chinese
feelings in the course of securing an Anglo-
Chinese "equal" treaty. If at all over the
next decade or so, it would be then to consider
whether any arrangement could be proposed with
regard to the New Territories, and possibly
this might involve some satisfactory working
agreement for the enjoyment by Hong Kong of
certain economic advantages in the New
Territories, and even of certain military
rights, in return for the premature restoration
to China of the nominal sovereignty of the
New Territories without waiting for the lease
to expire in 1997.
In his note at the top of Sir G.
Northcote's attached letter of the 8th of June,
an
the S. of S. has written instruction to discuss
A
with the F.0. and to put up a reply to the
Governor. I suggest that a copy of that letter,
together with a copy of the Governor's despatch
of the 11th of June, should now be sent to the
F.0. and to the Service Departments proposing
a discussion, but without at this stage
offering any C.0. views. It really comes down
to the question whether now is the time to
raise the matter with the Chinese Government,
and that must be largely a question for the
consideration of the F.0. in the light of
general political considerations, and H.M.G's
policy in China. I suggest in the meantime
the S. of S. could only usefully reply to the
Governor,