CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 131

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6.

What sum of money, by way of loan, purchase

money or premium would induce the Chinese

Government to agree to British tenure in some

form continuing after 1997 ?

Do Imperial interests justify such an outlay ?

I regret that I have no means of forming

an opinion on this subject, but the following remarks are,

I believe, apposite. Firstly, it is unlikely that at any

future time China will be more deeply impressed by the

advantage accruing to her through Hong Kong being possessed

by a strong foreign and friendly Power than she is at

present; and, secondly, although sixty years of the lease's

currency have still to run, the injurious effect upon British

trade and capital of a prospect of non-renewal of the lease

would be operative many years before the actual date of

expiry of the lease.

7.

As a purely personal opinion

venture to

say that £20,000,000 would not be too great a sum, were

outright purchase being considered.

If an extension of the life of the lease

is to be negotiated I consider that one hundred years is

the shortest period worthy of consideration.

I have the honour to be,

sir,

Your most obedient, humble servant,

(.Ad. Wrthest

Governor.

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