4.
wanted to obtain the views of the Departments concerned
as to the importance of Hong Kong from the point of view
of Imperial interests. The Colonial Office felt it
proper that the views of successive Governors on the
desirability of extending the lease should be given the
fullest consideration. As far as Hong Kong itself was
concerned, the expiration of the lease of the New
Territories in 1997 would give rise to difficulties some
time before that date owing to the demand for long period
commercial leases. At present the Colonial Government
were giving short period leases with the option of renewal,
if such could be arranged, after 1997. He felt that on
the whole it would probably be as well to wait until there
were signs of this having an adverse effect on commercial
concerns before making definite proposals on this ground.
Mr. Howard referred to the recent rumour that
the French had received a lease of Hainan Island in
return for aid to China and asked whether this would not
effect the present proposals. It was felt that the
rumour was too vague for it to influence our attitude
at the moment.
Sir John Brenan emphasised the importance of
ensuring that in such a matter the offer should be made
by the Chinese rather than to them.
Mr. Compton said that a sum of the order of
£20,000,000 was the only one which the Chinese were
likely to accept. It was impossible to envisage the
payment of such a sum by H.M.G. at the present time, and
it would moreover appear to be contrary to the recent
Cabinet decision on the currency loan. In the absence
of an overwhelming cause from the defence point of view
for such a payment, he thought that the Treasury would
7.
not