CO537-(1262-1649) — Page 914

00027

e Mr. Dening has,

the 22nd August 20

ject of the future 8 for discussion, orandum which he 2th August (19). suggestion that between the Colonial

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18.9.46.

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Ref.:

CO 537/1649

THE NATIONAL ARCHIVES

Ins

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

N

x this is, I think, home of

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Mr. Mayle.

Some days ago you handed me a copy of the note you have prepared for the Far Eastern Committee dated 2nd October which is at 34 and asked me to comment on it. When I dictateu the minute which i subsequently handed to you I had not had the advantage of seeing the file. At the end of last week, however, you were able to release it and I have therefore umended my original comments.

I ventured to suggest that the arguments for our taking the initiative in opening discussions with the Chinese (paragraph ó of your note) might be strengthened, If, as I think they do, the arguments against our taking the initiative outweigh the arguments for doing ao, our case is the stronger for giving rull weight to the opposing argument. The most convincing argument for seems to me to be that the Chinese have it in their power to make our position in Hong Kong untenable and should they decide to allow agitation with this ultimate object, our tactical position would be weakened. It seems possible, however, that the Chinese Goverment will themselves raise this issue before long. (In this connection please see telegram No. 1205 which I have attached to the file at 35.

12.10.46

In regard to our undertaking to the Foreign Orrice to examine what line should be taken in the event or negotiations, (paragraph 7 or your note at 34; I wonder whether un alternative methou might commenu itself to you,

namely to examine the arguments in support of three alternative courses: (a) the retention of Hong Kong and the New Territories; (b) the restoration of Chinese sovereignty over Hong Kong anu the termination or the lease of the New Territories; (c) the

oller to terminate now the lease of the New Territories only.

I have done this in a summarized form in a note which

I have placed on the file opposite. I have also drown attention to further factors and possibilities which I think need examination in any inter-departmental discussions.

II, as I think is the Colonial Orlice view, the arguments Ior retaining liong Kong and the hew Territories outweigh the arguments for agreeing to the restoration 01 Chinese sovereignty then the third course homely the surrender or the lease o the New Territoires becomes u compromise solution and the terms upon which it might be agreed a metter for negotiation. The conditions suggested by Sir M. Young (see paragraph 4 or III of my note) would clearly be the most satisfactory, but we ought I think to consider in detail with the

Foreign Office whether ther are any other arrangements which would be acceptable to us ir necessary.

Buberore any serious consideration of our relations with the Chinese on the question of the future or Hong Kong can take place authoritative answers to three questions are I think required. These questions are:-

(I) what is

Far cast;

H.M. G.'s most important interest in the

(ii) how is this interest affected by any difficulty likely to arise in our relations with China

over Houg Kong;

V.)

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THE NATIONAL ARCHIVES

2

Ref.:

CO 537/1649 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