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sovereignty. Apart from the wider issues involved the retrocession of the New Territories to China would give rise to many complicated problems in connection with the administration of Hong Kong which have not yet been fully examined. If, therefore, Dr. Soong raises the matter, we should perhaps return a non-committal reply to the effect that the question should be taken up through the usual diplomatic channels.

6. As regards the areas in (a) and (b) above, it would seem both from the Generalissimo's statement above and from various indications which have come from Chungking, that the Chinese may be willing to let the issue remain dormant for the time being. It is generally recognised however, that China's ultimate object is the recovery of Hong Kong. The future status of the Colony will therefore be a matter for consideration by His Majesty's Government in due course; but it is not anticipated that Dr. Soong will wish to raise this particular issue at the present time.

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