CO537-(1262-1649) — Page 518

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I have therefore placed opposite a draft letter for consideration, saying that there is nothing to prevent the construction of an aerodrome suitable for modern civil transport aircraft in the leased territory and that we would consider whether there might be some political advantage in an approach to the Chinese asking them to co-operate in the construction of an airport at Deen Bay.

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23.7.46.

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Mr. Lloyd

Please see Mr. Mayle's minute of the 30th May (flagged) in which he suggests that the Chinese might be invited to co-operate in the construction of an airport at Deep Bay. Since then the Secretary of State has told Mr. Bevin that he does not feel there is a case for our taking the initiative in offering to discuss the future of the New Territories with the Chinese as suggested by the Foreign Office. Nevertheless, recent papers (which I sent forward to you yesterday) tend to show that the Chinese are likely themselves to keep this issue to the fore. An invitation to the Chinese Government to embark upon the construction of an airfield as a joint project would show some practical appreciation of their aspirations without going to the length of retrocession of the Leased Territories as suggested by the F.0.

I have accordingly expanded Mr. Vile's draft in the light of the correspondence on 54145 with the Foreign Office as to the tactics we should pursue to deal with the known Chinese wish for the early termination of the New Territories.

The draft includes Mr. Mayle's suggestion that the fact that the lease is due to expire in 52 years is itself a reason for not embarking on a project estimated at £4,000,000. Mr.WhauswWill perhaps very kindly say whether he considers such a period is, in fact, too short to justify such expenditure.

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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