CO537-2187 — Page 162

ET MON

(F 1544/376/G)

TOP SECRET

Rain. 8/2/47

Foreign Office,

S.W.1.

25th February, 1947.

97

(€44)

Dear Arthur,

Thank you for your letter of the 4th February about Hong Kong.

As regards the first point you raise, the desirability of a reassuring statement, I am still inclined to question whether any statement would serve to reassure the Chinese in Hong Kong as to our ability to withstand pressure from China designed to undermine our position in the Colony. I do not see, however, why the absence of a reassuring statement need prevent the Colonial Office from proceeding with rehabilitation and development in the Colony, or need stand in the way of His Majesty's Government giving their blessing to the floating of a loan in the City, which I understand is under contemplation.

As regards the second point, the question of an airfield, I am doubtful whether it would be possible to say with any certainty in the foreseeable future that conditions will be such as to justify our building an airfield in the New Territories rather than in the ceded portion of the Colony, or vice versa.

Both these points are in fact subject to a decision on policy about Hong Kong, and until this is resolved I do not think any useful purpose would be served by asking the Colonial Committee to proceed with consideration of the paper.

The Right Honourable

A. C. Creech Jones, M.P.

On