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Nevertheless, sooner or later the question

of purchase or lease-extension must arise, if British

Hong Kong is to survive as a Colony: Ihope that my despatch

made that clear. Nor would that day be sixty or even

fifty years hence; even now, as I stated in paragraph

13 of the enclosure to my despatch of June 11 th, it

shews signs of becoming a factor in economic affairs.

When the lease expires (1998) if the Chinese Government

has refused an extension, we will have broadly speaking

three alternatives: (1) to refuse to quit the New

Territoties and to resist ejection; (2) to enter into

some kind of condominium arrangement;

back Hong Kong to China.

(3) to hand

As to Chinese present willingness, I wrote to

you of Mr. Rogers' views. Since then Sir Shouson Chow,

an ex-member of the Hong Kong Executive Council, has

approached me with the suggestion that now is the time

to secure a longer tenure: he was convinced that the

Chinese Government would agree and offered his services

as go-between. Sir Robert Kotewall, the present Chinese

member of the Executive Council, holds the same views.

Thus we have on one side a chance to help

China with money and at the same time to strengthen a

very important part of the Empire: on the other there

are the objections, no doubt of the most serious order,

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HOME KONG

COAEBHWEHL HoneE'

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