CO129-507-6 China- position of Hong Kong New Territories 8-9-1928 - 17-11-1928 — Page 32

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in sixty nine years give rise to a problem of considerable

In view of the great development, however, of

difficulty.

international arbitration and of the extent to which

international relationships are governed by the League of

Nations and the provisions of the Covenant, it is hardly

conceivable that His Majesty's Government would be able to

keep possession by force of the New Territories under the

plea of economic necessity. The solution of Hongkong's

difficulty and the ultimate future of the New Territories

would appear both to be matters for negotiation with the

Chinese, and until a favourable opportunity for initiating

such negotiations has arisen it seems essential to avoid

any action which could be construed as an intention on our

part to violate our obligations towards China.

5. With regard to paragraph 4 of the draft despatch

enclosed in your letter under reply, Lord Cushendun considers

that the question of the amount of revenue which should be

devoted to the development of the New Territories does not

appear to be one which calls for any comment from him except

in so far as the considerations advanced in the last sentence

of the preceding paragraph may be held to have some bearing

on the point at issue.

I am,

Sir,

Your obedient Servant,

Grouge Mounsey.