16.
I consider therefore that if the Chinese
seek the discussions contemplated in 1943 concerning
the leased areas, we should first of all make it
a condition prior to the opening of the discussions,
that the discussions should be confined to the
leased territories, and that we should also try to
get the Chinese to agree to recognise that any
arrangement that is reached as the result of those
discussions in respect of the leased territory
should be regarded as the final settlement of the
so-called Hong Kong question. We should then be
ready to discuss the New Territories lease on the
basis of conducting a joint review of it in the
light of the changes which have occurred since it
was first made and present-day circumstances and
conditions. On this basis, we might be able to
come to some arrangement which would be acceptable
to both sides, and, as a maximum, we should be
prepared to offer to agree to the premature
termination of the lease within a reasonable period
on the conditions suggested in Annex II, which would
meet our needs and difficulties, referred to in
sub-paragraphs (c), (d) and (e) of the preceding
paragraph.
17. To summarise, my conclusions are:-
(a) that a reassuring statement concerning our
intention to remain in Hong Kong should be made
at the earliest convenient opportunity
(paragraph 13):
(b) that if the Chinese seek the discussions
contemplated in 1943, we should adopt the plan
outlined in the foregoing paragraph of this
memorandum, and should be prepared, if necessary
Aurender and as a maximum, to agree to the termination of
the lease of the New Territories on the
conditions