(*2643—150) Wt. 16318-94 (*3070-150) Wt. 26563-2
695
15,000 7/38 T.S. 20,000 10/38 T.S. 695
C. O.
Mr.
Mr.
Mr.
Mr. A. J. Dawe.
Sir H. Moore.
Sir G. Tomlinson.
Sir J. Shuckburgh.
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
DRAFT.
sition
original acquisition of that area was
due, as you know, solely to defence
requirements.
The development of the
port and aerodrome facilities has followed
and has accentuated defence considerations
As a base of British power and prestige in
the Far East Hong Kong is shown in the
light of recent events to be a major
FURTHER ACTION.
interest of this country.
Special
considerations will no doubt always be
X
present which will give the Government of
Hong Kong an important interest in
assisting any negotiations with China on
the question of the New Territories.
کی
We shall continue to exercise a
prudent finance in Hong Kong as well in
the matter of general surplus funds as in
that of the currency surplus, but in
present conditions there is not likely to
be much chance of increasing the general
reserves; it is more likely that it will
be
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