00053

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e the factors to

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tions with the

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peration are blishment of

the Far East

in particular,

itial need in

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short notice rade of Hong depends.

the Chinese tion of the

(the New

is the return

immediate

hinese control

ent with

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with regard to

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defences to be

should we

an operational vent of a war

h China was in

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ented by

ast Asia, is

repel small

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1

cms

Ref.:

CO 537/1649

THE NATIONAL ARCHIVES

Please note that this copy is supplied subject to the National Archives' terms and conditions asuthat you National Archives feblect to copyright

restrictions.

ruse of it

Further information is given in the enclosed Terms and Conditions of supply of

- 5-

00054

2

cms

Ref.:

THE NATIONAL ARCHIVES

2

CO 537/1649 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

restrictions.

Chuster

(g) The great value to British/and other foruten trade interests in China, of ensuring that ilong Kong will continue as a base providing conditions in which business can be transacted with reasonable security, and the difficulty in which British trudo interests would be placed if there were no such base.

(h)

(1)

(J)

The effect of our position in other Colonial territories of the relinquishment of sovereignty over Hong Kong to the Chinese. For example, Gibraltar, Cyprus, British Honduras, Falkland Islands are or have been the subject of claims by foreign countries. The return of Hong Kong to China might give rise to claims by foreign countries in respect of other Colonial territories.

The effect on the territory and its inhabitants of the relinquishment of sovereignty over Hong Kong to the Chinese. Judging by what has happened in Shanghai, the immediate effect of an early return would undoubtedly be detrimental.

If, in return for sovereignty, the territory were leased to His Majesty's Government the conditions would have to provide the same security for capital investment and for other measures for the rehabilitation and development of the territory as there would be if the territory had remained a British Colony. For this purpose the period of the lease would have to be such as to attract capital for the rehabilitation and development of the Colony and it would probably have to secure, for the administration, jurisdiction and control substantially on the existing basis.

It is likely, therefore, that the conditions of the lease would have to be such that the Chinese would acquire sovereignty in name only. This might satisfy China for the time being, but the arrangement might give rise to criticism in America and elsewhere,

(k) There is reason to believe that the people

of Hong Kong do not wish to be ruled by a Chinese administration, although it is recognised that were it practicable for a plebiscite to be held on the matter there would probably be an overwhelming majority vote in favour of transfer, since this is not a matter on which it can be hoped that the real feelings of the Hong Kong Chinese would be revealed.

لحسنه

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