45. Leasury
(Prepared to fall in with
procedure
16. 11. 38.
C.I.D
general views re
question of her serritaris.)
Wa like to discuss.
payment for acquisition of
4.0.
The Treasury view is that in the absence of
any special considerations payment to the Chinese
Government in respect of an extension of the lease
would, in principle, be chargeable to the Hong Kong
If that view is accepted they suggest
Government.
that some arrangement should be made for accumulating
a reserve against the time when a payment in respect
of the extension of the lease may be necessary.
On both points the Treasury view seems to
me to be unacceptable. The proposal to extend the
In the cost place lease of the New Territories is admittedly madeļi in
the interests of Hong Kong. I do not think it has
been suggested, however, that the sum of £20,000,000
represents the value of those Territories to the
Colony for purely colonial purposes. The function of
Hong Kong is largely as an agent of British policy
in the Far East. The maintenance of the New
Territories would appear to be necessary to maintain
Lie. necesary on liferal grounds
its military and commercial position.
That being so
it seems to me to be fair that any charge for
extending the lease of the New Territories should be
borne by Imperial funds, since the interests concerned
are Imperial rather than Colonial.
As far as setting up a reserve of the
Colony's funds against the time when a payment may be
necessary, the proposal seems to me in any case to be
impracticable at the present time. On general
grounds
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