CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 15

A

interests might not demand the retention of

Hong Kong. We could again hardly maintain it

in the face of a strong and hostile power in

control of Canton, and it is likely that Chinese

nationalism will feel strongly on the question

of foreign control of any of her territory.

the newe

I

suggest that it is therefore not impossible that

it might be more in our interests at some distant

date to give up Hong Kong itself. There is the

final possibility that the present conflict may

end with Japan's substantive control of Northern

and/or Central China, and a weak and disorganised

Chinese Government in control of South China,

in which case our interests might demand the

retention and strengthening of Hong Kong.

Whatever the issue, however, I suggest that it

would be in our interests to wait until the

effective conclusion of the present conflict

before entering upon negotiations for the

extension of our lease of the New Territories.

? Now write to the Treasury and F.0.

(as suggested in 4) commenting generally on the

lines of the above minute, and concluding as at

'A'.

We might also telegraph for a further six

copies of the map enclosed in (8) as these will

almost certainly be required.

Finally, I

suggest a print should be opened for this

important question, and that the file should be

recirculated for conson.

be printed.

of what papers should

P. Rages

29.VI, 38.