NATIONAL

FOR O

SCHEM

DISABLED

MEN

Telephone No.: WHITEHALL 1234.

In any reply

please quote Regd. No.

S.43577.

(41)

Dear Cowell,

45.

TREASURY CHAMBERS,

WHITEHALL, S.W.1.

16th November, 1938.

We have deferred dealing with your official

request for observations on the subject of the lease of

the New Territories, Hong Kong (your 53852/38 of the

6th October) pending receipt of the views of the other

Departments concerned, and I think you can take it that,

on the question of procedure vis à vis the Committee of

Imperial Defence, we shall be prepared to fall in with

the general view, whatever it may be.

d. 46,

(47)

الله

Copy

The subject, however, gives rise to a question

of more substance which we should like to explore with

you semi-officially. The proposal to acquire the New

Territories now by a payment of £10 or £20 millions seems

to have been considered on the assumption that the United

Kingdom would meet the charge. No one seems to have

suggested that Hong Kong should pay, perhaps because the proposal arose

from suggestion wae to some extent due to a desire to find a

way of helping the Chinese Government.

A payment of

such

H.R. Cowell Esq., C.M.G.

Colonial Office.

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