The C.O. fell
A proper
that the views of succiones
Gremors
the desnantity
of extending the base should be firm the fullest corinduration
wanted to obtain the views of the Departments concerned
to the importance of Hong Kong from the point of view
of Imperial interests. As far as Hong Kong itself tea
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
an
were signs of this having a adverse effect on commercial
concerns before making definite
herposals
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
runour 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 not be prepared to consider it.
Mr.