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Extract from a letter from Mr. Creech Jones to

Mr. Bevin dated 4th February, 1947.

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The other matter which is dealt with in the paper, namely, the line we should take in the event of discussions with the Chinese on the New Territories, is of some urgency because until we have made up our minds whether or not we are going to make continued control over installations in the New Territories one of the essential conditions to any premature termination of the lease, we cannot very well take a decision as to whether the new airport, which is so urgently required, should be constructed in the New Territories, or in the ceded portion of the Colony. The difference in estimated cost

is £4,000,000 in the New Territories as compared with over £10,000,000 in the ceded portion of the Colony, where the airport would take over twice as long to construct. Furthermore, the site in the ceded area has not yet been examined by the technical experts.

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