that Hong Kong as it is today could not continue to
exist, if deprived of the use of the lease territo
tories.
2. The question for decision is whether the present
is a favourable opportunity for negotiating an extension
of the lease. The danger of effecting with the present Chinese Government a settlement which might subsequently be repudiated by a Chinese Puppet Government controlled by
Japan, has already been pointed out. Further, the fact
that the Chinese, though desperately in need of cash,
have not themselves put forward any such suggestion has also been referred to as significant. Unless, therefore,
there are anv recent developments in our Far Eastern
B
Policy, of which I am ignorant, which would make it
possible for a settlement of this question to be included
in some general policy for more active assistance to
China, I can see little advantage, and considerable danger, in raising the ouestion ourselves at the present
time. It is quite clear that, if it is regarded as a purely Hong Kong domestic issue, the Treasury attitude
towards any financial contribution from H.M.G. would be
unfavourable.
مسما
Am.
Differen
31.1.39.
23བ ། ་ ངག ་གས་ ོན་ང་
purpares
pround as suggested by M Towell.
← them await
might remaine
which
B.5, report for
when sanding
B.P. copy of vor.
محمده
3
31.1.39