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economically before any question of political concession to China is raised, that fact would in itself enable us to maintain our interests in China even though Hong Kong was ceded and that accordingly the first step should be to re-establish and reinforce our economic position in the Colony.
This view if I have correctly interpreted it,
is not one which has received any general support as far as I am aware, but clearly it is a matter on which the views of the Board of Trade and other experts should be sought. I wonder therefore whe ther the time is not opportune to suggest that this particular point and indeed the whole question of the future of Hong Kong should be examined by an interdepartmental Committee. There would be advantage in establishing such a committee now while Mr. MacDougall is in this country
and could attend some of its meetings. Such a proposal would also be a more forthcoming reply to the Foreign Office than a mere rejection of their proposal that we should ourselves ma ke some offer to China.
In his minute of 6.5.46 Mr. Mayle suggested that a note should be drawn up setting out the considered views of the Department on the issues raised in the Foreign Ofiice memorandum. I have made a great many notes to this end but I regret that I have not as yet reduced them to the form of a memorandum. If my suggestion that this whole question should now be considered by an interdepartmental committee such a memorandum would be an essential preliminary.
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restrictions Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet subject to the National Archives' terms and conditions and that your use of it may be subject to copyrigh
Sir G. Gater.
1. In the memorandum enclosed with Mr. Bevin's letter at No.7 the Foreign Office argued-
(a) that, in addition to introducing internal reforms in Hong Kong, we should take the initiative by inviting China to discuss the status of that territory and should enter on any discussions prepared to make concessions which would at least involve either (i) the retrocession of the New Territories or (ii) the return of both Hong Kong and the New Territories to China on the condition that China would voluntarily lease both areas to us for thirty years;
(b) that we should offer now to negotiate with China a Customs Agreement relating to Hong Kong.
2.
With the consent of the Foreign Office a copy of their memorandum was sent to Sir Mark Young
in
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restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright