CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 43

ultimately cease to exist; as a separate entity

Bould

it

be constantly at the mercy of the power

holding the New Territories. The loss of Hong

Yong as a Colony would, presumably, be a serious

blow to British trade in the East, and also to

British naval interests; but the financial effect

on the inhabitants, except those concerned

exclusively with British trade, might be small,

if the government of the mainland chanced to be

reasonably stable. On the other hand, if there

should be no stable governemt on the mainland,

we should presumably hold on to the New Territories

without regard to the termination of the lease.

In neither case could Hong Kong properly be

called upon to pay any considerable sum for the

extension of the lease.

HRlowell

45-11-35.

Sin Charkinson

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further developments.

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