(2) the possibility that the Japanese-sponsored
puppet Government of China may in time establish its
position and repudiate the engagements entered into by
its predecessor. (The puppet government has already
issued a warning against financial agreements with the
present Chinese Government);
(3) the possibility that we might not be able to
hold either Hong Kong or the New Territories in a war with
Japan.
Clark Kerr, to whom the Governor sent a cony of
his letter, considers that the sale of the New Territories,
while China's war slogan is "no alienation of sovereignty
'bf territory", is out of the question. On the other hand,
if His Majesty's Government are prepared to pay for an
extension of the lease, it might be worth while sounding
Chiang Kai-shek.
We suggest that in the first place you should,
without encouraging false hopes, ask the Governor to
elaborate his suggestion, giving you some indication of
the length of time for which he proposes that the lease
should be renewed, the sort of price which it would be
worth our while to pay for this, and so on.
The
No comments yet.
Private notes are available after approval.