longer range of the New Territories it
would be reasonable to have in mind the
possibility of Hong Kong making a contribution
in some form. It would depend on the
circumstances of the deal in prospect. We
cannot begin to form a view in present
conditions whether such a deal would be
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likely to be a matter of a simple cash payment.
If I were to prophesy, I should say that it
would be very unlikely, and that Chinese
sentiment will be so opposed to further
alienation of Chinese territory, that even a
proposal for a lengthened lease of the New
Territories will not be negotiated on any cash
basis, but only as part of a wide political deal,
possibly also embracing the Treaty Ports.
4. On the question of principle to which you
refer at the end of your second paragraph, we
should not like to join you in the opinion
that a payment to China for the New Territories
would be chargeable to Hong Kong funds. The
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