such magnitude, and with this motive behind it, would
no doubt have had to be found, at any rate in part, by
the United Kingdom Government; but we hope that we
shall carry you with us in the view that, in the absence
of such special considerations, a payment to the Chinese
Government in respect of the extension of the lease would
in principle be chargeable to the Hong Kong Government.
If you accept this view, we should be glad if
you would let us know whether you have in mind any
arrangements for accumulating reserves against the time
when a payment in respect of the extension of the lease
may be necessary, since in the absence of such reserves
there must clearly be a risk that the United Kingdom
Government will have to assume a charge properly falling
on the Colony simply on account of the inability of the
Colony to meet it. The lease of the New Territories is
a wasting asset, and it would seem to be in accordance
with prudent finance to set aside an annual sum in
respect of its depreciation, (though it may be necessary
to wrap it up in some way if the cupidity of the other
party
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