Baltion 19646/17/48 5 Sir A.
6. for.
Grantham
tel.881
(Ref. 1)
7. NOTE BY
MR. WALLACE.
10
14-9-48
23-9-48.
1. I have placed at (7) a Note, suggested by Mr. Paskin in the last paragraph of his minute of 2/9, summarising earlier consideration of the problem posed by the situation in the New Territories of important Hong Kong installations in relation to the possibility of those territories passing back to the control of China. As will be seen this does not take us very far towards a decision as to what our policy should be towards development in the New Territories.
2.
As regards the new airfield, Mr. Paskin in his minute of 2/9 points out that the decision to Construct this in the New Territories is not quite the same thing as deciding to construct a great new water reservoir, because an airfield is not so essential as an adequate water-supply. There is also the further point that an airfield is not expected to remain serviceable so long as a water-supply, so that a surrender of the lease of the New Territories long before due date might still allow us full enjoyment of the new airfield. For both these reasons the fact that the new airfield would be situated in territory which would ultimately revert to China (as distinct from its being in territory too near to China to be safe) was not,
I think, given very serious consideration.
3.
As regards mining development, also referred to in Mr. Paskin's minute, nothing has been decided. The letter to Sir Alexander Grantham, a copy of which is filed at (5), merely draws attention to the uncertainty of our tenure of the New Territories and asks for this to be considered in relation to mining policy.
4.
It is, I think, to be borne in mind that, as briefly noted in paragraph 4 of (7), the Chinese asked for the return of the New Territories in 1943 - when the Treaty abolishing extra-territoriality was signed - and were told that the question of the lease of the New Territories would be considered, if the Chinese wished it, when victory was won. So the Chinese have an opening to raise the matter at any moment.
5. Sir Patrick Abercrombie visited Hong Kong at the end of 1947 and has just produced a "Preliminary Planning Report". He notes early in this Report as follows:- "It has been assumed, throughout this Report, that for the purpose of the Development Plan the New Territories are retained; but that the major urban activities should be confined to Hong Kong Island and Kowloon; and that the location of the Defence Services should have a preference for the Island. Later, of water supply, there is this:- "Water supply
may be a determining factor in the size of the population. With improved housing conditions the consumption per head of the existing population will increase and there is the future population to be allowed for. The position is really serious and it is extremely desirable
11
that
Page 10Page 11