32
I sent you a copy with my letter of the
29th January? There is apparently a
considerable volume of local feeling on the
subject of the Colony's claim to assistance
from the U.K., and the Governor says that
there can be little doubt that the manner in
which a settlement is reached now over this
question will influence the unofficial
attitude for years to come. The goodwill of
the unofficials will become increasingly
important to us in Hong Kong, especially
if our political difficulties with China, of
which the recent Kowloon incident provided
an example, increase and intensify. Indeed,
we might find from this point of view that
whatever assistance is given now will prove
to have been cheap at the price.
6. Bearing these considerations in mind,
the proposals which we should like to put
forward for Hong Kong for sympathetic
consideration are:-
(1) The waiver by H. M. G. of the repayment
of the £3,250,000 which has been
advanced to Hong Kong by way of loans
in aid of administration. This would
involve the retention by Hong Kong of
receipts from the sale of relief
supplies, purchased from Hong Kong
Government funds with the assistance
of the "loan in aid of administration"
(2) A free grant to Hong Kong of (say)
£5,000,000 provided that Hong Kong
accepts as a final charge against Hong
Kong Government's funds the various
items of expenditure on the attached
2nd Enal 15 No. 13 as amen
mended,
list which the Governor contends shoul
be