Đang hong

Copy to British Ambassador, Shanghai.

63852/38 (35)

53852/58 (19)

56852/58

Aned

(26)

-031

Leeas

copy

B.T.

SECRET

My dear moore,

Government House,

6th January, 1939.

I have not hastened to answer your letter

or October 4th because with the fall of Canton and the

subjection of much of the Kwangtung Province to the

Japanese it is, I fear, probable that we have 'missed

our market', to which danger my letter of August 4th

addressed itself. Nor would I re-cpen the matter now,

vital though it is tc this Colony, were it not firstly

for two or three points arising out of the record of

the meeting of August 26th which call for comment and,

secondly, because even now it may not be too late.

2.

For the purpose of this letter i will

assume that my main point is accepted, viz. that from

the economic stand-point Hong Kong cannot continue to

exist as an independent British Colony after 1997, unless

British tenure over a considerable part of the New

Territories is substantially extended in terms of time.

If there is room for doubt there I beg that I may be

informed of the points to which doubt applies and I will

amplify my arguments if I can.

3. Rather I take it that the economic stumbling-

block is whether

to quote Mr. Wardley's conclud ing

remark - "the commercial importance of Hong Kong would

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