CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 52

(*2643–150) Wt. 16318-94 15,000 7/38 T.S. 695

C. O.

Mr.

Mr.

Mr.

Mr. A. J. Dawe.

Sir H. Moore.

Sir G. Tomlinson.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

FURTHER ACTION.

sentiment will be so opposed to

further alienation of Chinese terri-

tory, that even a proposal for a

lengthened lease of the New Terri-

tories will not be negotiated on

any cash basis, but only as part of

a wide political deal, possibly also

embracing the Treaty Ports.

4. But if the question were

to resolve itself into a purely

financial transaction, we should not

like to subscribe to the suggestion

that in principle the whole cost of

acquiring the New Territories should

fall upon Hong Kong funds, though as

I have already stated we would not

rule out the possibility of a Hong

Kong contribution.

While it is

true