538/39.
SECRET.
my
dea
hatheate
Colonial office,
Downing Street,
2
14 February, 1939.
Thank you for your further letter of the
6th of January on the subject of the extension of
the lease of the New Territories.
In my letter to you of the 4th of ctober
I told you that the proposal had been referred to
the Board of Trade for their observations on it from
the general British commercial aspect. So far we
have not had this report from the Board of Trade, but
we recognise that it is not likely seriously to affect
the general argument that Hong Kong, as it is today
could not continue to exist if deprived of the use of
the leased territories. The question for decision at
the moment seems to be whether the present is a
favourable opportunity for negotiating an extension of
the lease. There is, of course, the danger that any
settlement effected with the present Chinese
SIR GLOFFRY NORTHCOTE, K.C.M.G.
Government