Hong Kong to China, we consider that it is of the
utmost importance, that, if and when the Chinese
seek the discussions contemplated in 1943, it
should be made a condition prior to the opening of
discussions that they will be confined to the lease
of the New Territories. It would also be useful if
an understanding were reached with the Chinese
before the discussions that, if a satisfactory
arrangement were reached as the result of the
discussions in regard to the New Territories, they
would accept this as a final settlement of the
so-called Hong Kong question.
12. The following appear to be the factors to
be taken into consideration in formulating the line
to be taken, if and when discussions take place
with the Chinese.
(a)
Chinese goodwill and co-operation
are necessary for the re-establishment
of our position in China, in the Far
East generally, and in Malaya in
particular, whereas China has no essential
need in which she is dependent on us.
(b)
China is in a position at short notice
(c)
to paralyse the entrepot trade of Hong
Hong, on which the Colony depends.
The insecurity of our present tenure
of the New Territories for new projects
involving substantial expenditure
(e.g. the airfield project estimated to
cost £4,000,000).
(a)
The need for continued control over
installations in the New Territories on
the termination of the lease.
(e)
The administrative and other difficulties
that would follow the return to China of
the
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