53852/38.
Cypher Telegram from the Secretary of State for the
Colonies to the Governor of Hong.
(Sent 5.0 p.m., 27th May, 1938).
Personal and Private.
Your secret personal letters of the 13th April
and 7th May to my predecessor about the New Territories.
There are, of course, many difficult complications involved
but question of outright purchase in any case would not
seem to be worth pursuing as it can be assumed that
Chinese Government would not entertain such proposal.
As regards possible extension of lease could you
elaborate your suggestion for instance as to essential
economic importance of Now Territory to Hong Kong, and as
to desirable period of extension of lease and the price or
consideration which it will be worth our while to pay and
any other material points which in your view would need to
be considered. No objection to your personally and
secretly consulting Naval Commander in Chief and General
Officer Commanding.
MacDonald.