CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 13

Memorandum.

Government.

Para.1. The map enclosed in is

extraordinarily useful as showing the extension other unfortant H.K. interest of the urban area of Kowloon outside the limits

of the ceded territory, and it is clear that if

the New Territories are to revert to China in

1997, a considerable and important part of the

town will remain outside British control. This

will undoubtedly be extremely inconvenient, but

I am not sure that the problem is an impossible

one.

Apart from the question of defence,

there appear to me to be two reasons of first

class importance for maintenance of control by

the Colonial Government over the New Territories.

The first of these is the question of water

supply. As is shown on the attached map, the

catchment area is outside the limits of the ceded

territory, and this water is vital to Hong Kong's

continued existence. It is no doubt possible

that an arrangement might be made with the

Chinese Government, however, regarding control

over the existing waterworks. The trouble is

that the present supply of water is proving

insufficient for Hong Kong's needs, and that

of the waterverle

continued extensions will no doubt be necessary.

The second reason of importance is the

fact that the only land suitable for an aerodrome

is in the New Territories.

Hong Kong is rapidly

becoming an airport of first class importance,

and it is desirable that if possible it should

have control over the aerodromes in order to

ensure efficient development. It is by no means

certain, of course, that this control would be

essential by 1997, since we cannot tell how the

Chinese