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THE NATIONAL ARCHIVES
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in No.10 which invited his comments, suggested discussion or exchange of views with Sir Horace Beymour (then H.M.'s Ambassador in China) and asked him to say what concessions could be made with the least economic and administrative disadvantage to Hong Kong if it were eventually decided that some must be offered.
3. In the memorandum enclosed in No.14 Sir Mark Young has sent us a simple and straight- forward exposition of the case against taking the initiative in the matter of territorial concession.
It statesB To me it is a very convincing document. (see A on page 2) what Sir Mark Young rightly regards as the four governing considerations; it shows (B on page 4) that the frontier resulting from the retro- cession of the New Territories would be uncomfortable, unmanageable and politically/disastrous; it explores, only to reject, on the ground of unacceptability to China, the one arrangement (C on page 5) which might concede something to China and yet retain some confidence in Hong Kong in H.M.G.'s policy; it shows (D on page 6) how even the plan of retrocession, accompanied by a new thirty-year lease, would
Finally prejudice all development in the Colony. (see paragraphs 13 and 14 of the memorandum) Sir Mark Young concludes that our best hope lies in rapid constitutional and other development in Hong Kong and that he urges that, while pursuing that course, we should not make what he regards as the misguided attempt to buy Chinese goodwill which is not, in his view, to be obtained by any concession that we ought to make if we are genuinely concerned for the welfare of a Colony and its people.
4.
Sir Mark Young has not dealt with the customs issue (see paragraph 1(b) of this minute) on which he promises a further letter; he had not, at the time of writing, discussed any of this, or exchanged views about it, with Sir Horace Seymour who has, however, had a copy of his memorandum.
5. I have considered whether we should leave the Foreign Office to make the next move after the talk which they will no doubt soon be having with Sir Horace Seymour who is, I believe, now here pending retirement. But on the whole I feel that it might be wiser for the Secretary of State now to write to Mr. Bevin. The Foreign Office have our document through their man on the spot; we have not got theirs. Our line should, I suggest, be that if after considering Sir Mark Young's memorandum, which in our view is an objective and convincing document, the Foreign Secretary, still wishes the matter to be pursued, there should as a first step be inter- departmental discussion at the official level. (It would be useful to us if this could be arranged while Mr. MacDougall is on leave.)
I attach a draft on these lines.
Voll
20.7.46.
days that his M. Young has produced a clear and against any initiatives in offering
Carancing