CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 141

(F 4847/4847/10)

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FOREIGN OFFICE, S.W.1.

19th May, 1938.

4

My dear Gent,

In your secret letter No.53852/38, of the 6th May,

you asked for our views as to the reply which should be

sent to the private letter from the Governor of Hong Kong

to the late Secretary of State for the Colonies on the

subject of the New Territories.

Assuming that it is our intention to retain Hong

Kong and to defend it, if necessary, against the Japan of

the future, it would, we think, be worth while to pay a

reasonable price now for the acquisition of more extensive

rights in connexion with the New Territories. In

considering this, however, it would be necessary to bear

in mind:

(1) the dangers attendant on giving financial

assistance to China indicated by Sir Robert Craigie in his

telegram No.582, of the 10th May (copy enclosed);

G.E.J. Gent Esq., D.S.O., 0.B.E.

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