Mr. Rogers 20/5/38. Mr. Gent 23/5 Mr. Calder 23/5

Mr. Clauson 23/5

Mr. Cowell 26.

Sir H. Moore 24/5.

*Permt. U.S. of S. 26.5.38.

reasy

S. of S. has approved

53852/38.

G.C. 27/5.

Secret.

For conson.

(1)

(2)

Aned. 7.

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.

5

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 New 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 considerød. No objection to your personally and

secretly consulting Naval Commander in Chief and General

Officer Commanding.

Copy with copy of (3) to Mr. Ronald, F.O., with comp/s.

comp's. slip.

MacDonaldo

Page 140Page 141

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