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I

justify the expenditure that would be necessary".

urge with all the force that lies in me that nothing

will be left unaone to determine immediately this

fundamental question before the last hour of the present

very favourable opportunity passes. if I can help in

assembling "data for calculating the commercial importance

of Hong Kong to British trade and estimating the present

value of an extension of the lease of the New Territories"

(cf. Cowell passim) I will, of course, do so, but I should

be glad of some advice how to set about the job.

4. But there is a further point for consideration.

Assuming that inquiry does show that the value of Hong Kong

to British trade in the Far East is such that it is worth

while to secure its survival as a British Colony by the

payment of a large sum of money to China for an extension

of the New Territories lease, the equally important question

whether that bargain should be attempted now or at Sole

later date will then have to be consiuered.

5. Sir John Brenan made it clear at the discussion

of August 26th (vide pages 4 and 5) that except under the

strong pressure of circumstances China would be unwilling

to grant such an extension: indeed the history of the last

hundred years goes to show that in normal times she would

avoid taking any step that would prolong the hold of

Great Britain on any part of Hong Kong including the

British-owned territory. If this opportunity is missed

we must rely upon an equally favourable one turning up at

the right time in the future a long-range, hazardous

gamble in any case and it must be remembered that time is

and will be increasingly against us. For as the expiry-date

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