CO537-2187 — Page 10

of installations in the New Territories.

But

Hong Kong at the moment is Treasury controlled and, even if we would be content with the position,

I suggest that it is quite unrealistic to assume that the Treasury would be prepared to agree to expenditure of some £4,000,000 on the construction of an airport in the New Territories without a Ministerial decision that, in the event of our agreeing in principle to the return of the New Territories before the expiry of the lease, we

should make continued control over the installations one of the essential conditions. I therefore remain of the opinion that a new paragraph on the lines of the draft at No.85 should be inserted in the revised paper at (79), which is now awaiting the comments of the Foreign Office.

Mr. Caine has not yet fully considered Mr. J. B. Williams' minute. He sent the file back to me at my request with a note saying that at first sight he was inclined to share Mr. Williams' opinion.

I apologise for the length of this

minute.

henylen

5.2.47.

M: Caine

I am inclined

to a

with

арес

The

for

11' Dayle in this. The question I

aú

air fort should not. I comese.

party any public statement which might he

agreed

on,

but I do not

think that it would be night to pan it over in silence in the paper intended for Minutes' consideration,

There is some danger that

it, as) underland in Wille aus

Suggestion to mean, we buld the

J

au fost as an act I faith, the Chinese would wait until it was completed and then If they were still stagenough) walk in with allain to take over the finested proderet. It seems unfortant That Dimcilers should have

ཡིན་

Page 10Page 11

: