8
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been quite vague.
broader basis than has hitherto been the case. If it is agreed that we cannot simply sacrifice the long term political and strategic considerations without more investigation, I suggest that the despatch needs to be recast somewhat on the following lines. We should no doubt discuss the financial difficulties and possibilities very much in the manner of the present draft (these considerations will be relevant no matter what scheme is adopted), but we should go on to point out the extreme undesirability of Hong Kong being dependent on the New Territories for water supplies to a greater extent than is absolutely necessary, and to ask for much fuller particulars of the site on the Island which is mentioned in paragraph 4 of No.1. At the same time, I think we should follow up Sir Sydney Caine's suggestion (see 'X' in Mr. Sidebotham's minute of 12.7.) that we should ask for fuller particulars of the present scheme and should find out, in particular, whether it would consist of a series of reservoirs rather than a single reservoir? I think this is necessary partly because it affects the financing of the whole proposal, and partly because it is just conceivable that the correct solution might be a modified scheme on the present basis coupled with the development of facilities on the Island itself. I am aware
that this would be likely to involve undue capital expenditure, but I feel very strongly that we must be in possession of all the facts before deciding on this vital matter.
6. The issues on which I have touched are so far outside my sphere that I have not ventured on an alternative draft. I should be very happy, however, to assist in the work of drafting if it is felt that the general approach which I have advocated is the right one.
H.T.B
31st August, 1948.
Mr. Wallace.
It is on clearly necessary that the important political questions raised by Mr. Bourdillon should be considered in the H.K. and P. Department.
These questions may perhaps not be quite so formidable as at first appears since somewhat similar issues have already been discussed. For example it has been decided to proceed with the construction of a new airport at Deep Bay in spite of the fact that the site of that airport is on the perimeter of the New Territories. One of the elements in that decision was the consideration that a decision to proceed with projects in the
/New Territories