COPY

(F 4847/4847/10)

Decypher.

Sir A. Clark Kerr (Shanghai).

16th May, 1938.

D.

By wireless

R. 6.43 p.m.

16th May, 1938.

16th May, 1938.

No. 773.

Secret.

56857/58 (

Following for Sir A. Cadogan:

Probably you have had a copy of Governor of Hong Kong's

letter to Secretary of State for Colonies of April 13th about

the new territories of Hong Kong.

Here we think sale of new territories while China's war

slogan is no alienation of sovereignty of territory is out

of the question but that this argument applies with less force

to an extension of lease and that if His Majesty's Government

are prepared to pay it might be worth while sounding Chiang

Kai-shek.

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