1. Sir G. Northcote
(Argues that immedide action should be taken).
6.1.39.
(37 on
53852/38).
In this letter the Governor returns to the
charge, not so much by adducing new facts and
arguments, as by laying even stronger emphasis
upon those already submitted.
For the purposes of this letter he takes it for
granted that the survival of Hong Kong as an
independent Colony, on economic grounds, is
dependent upon the retention of the leased
Territories, or at least of part of those Territories:
and if, as has been suggested in previous minutes
on the 1938 file, by economic grounds, the Governor
refers mainly to the water supply in the Shàing Mun
Valley and the Kai Tak aerodrome, then I think we
will agree with this contention. The Governor sees
as the real "economic stumbling block" the question
whether "the commercial importance of Hong Kong
would justify the expenditure that would be necessary!!
In October we wrote to the B. of T. asking for their
observations on the proposal from the point of view
of the importance to British trade of the extension
of the lease: but so far they have not yet
replied. It was realised that the B.of T. would
need some considerable time to prepare their answer,
and it was agreed that we could wait up to a period
of six months.
Now, however, the Governor stresses the
importance of seizing the present opportunity, and
urges that this fundamental question should be
decided one way or another "before the last hour of
the present very favourable opportunity passes".
He is prepared to assemble data himself for
calculating the commercial importance of Hong Kong
to