CO537-2187 — Page 212

(f)

the built-up area of Kowloon which is

at present included in the New

Territories.

The absence of any good reason why we

should agree to the premature

termination of the lease without any

quid pro quo.

13. We consider therefore that if the

Chinese seek the discussions contemplated in

1943 concerning the leased areas, we should

first of all make it a condition prior to the

opening of the discussions that the discussions

should be confined to the leased territories,

of possible,

and, that any arrangement that is reached as the

result of those discussions in respect of the

leased territory should be regarded as the final

settlement of the so-called Hong Kong question.

We should then be ready to discuss the New

Territories lease on the basis of conducting

On

a joint review of it in the light of the changes

which have occurred since it was first made and

present-day circumstances and conditions.

this basis, we might be able to come to some arrangement which would be acceptable to both

sides, and, as a maximum, we should be prepared

to offer to agree to the premature termination

of the lease within a reasonable period on the

conditions suggested in Annex II, which would

meet our needs and difficulties, referred to in

(a) sub-paragraphs, (d) and (e) of the preceding

paragraph.

14. To summarise, our conclusions are:

(a)

That a reassuring statement concerning

our intention to remain in Hong Kong

should be made at the earliest

convenient opportunity (paragraph 10):

(b) That