true that the retention of the New

Territories is essential to Hong

Kong, as it is to-day, the original

acquisition of the area was due,

as you know, solely to defence re-

quirements which in turn were based

on the wider considerations of the

necessity of ensuring the security of

Hong Kong in the interests both of

our prestige and of our trade in the

Far East. In these circumstances,

it seems to us that the acquisition

of the New Territories as an integral

part of Hong Kong cannot be regarded

as simply a matter of domestic concern

for the Hong Kong Government alone.

5.

זיז

We shall continue to exercise

a prudent finance in Hong Kong as well in

the

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