53853/33.

Sir,

13

14 July 1938.

SECRET

11.6.38

8.6.38.

I am directed by Mr. Secretary MacDonald to

transmit to you, to be laid before the Army Council, a

copy of a despatch from the Governor of Hong Kong,

together with a copy of a personal letter from

Sir Geoffry Northcote, regarding the possibility of

negotiating with the Chinese Government for the sale

to the British Government of the New Territories of

Hong Kong or for an extension of the present lease.

2. The Secretary of State would suggest that,

the matter might most conveniently be considered at an

inter-Departmental meeting to be held as soon as

possible, and he will be glad to learn whether the

Army Council agree in this course.

3. A similar letter is being addressed to the

Foreign Office, Admiralty and Air Ministry.

I am, Sir,

THE UNDER SECRETARY OF STATE,

VAR OFFICE.

Your most obedient servant,

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