CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 63

Tel. No.-Whitehall 9400.

Any further communication on this subject should be addressed to :-

The Under-Secretary of State,

The War Office,

London, S.W.1.

and the following number quoted.

NATIONAL

SCHEM

MEN

083/6085 (M.0.2.)

SECRET.

THE WAR OFFICE,

43.

LONDON, S.W.1.

25 October, 1938.

(39)

Sir,

I am commanded by the Army Council to acknowledge receipt of Colonial Office letter No. 53852/38 dated 6th October, 1938, with enclosures, and to state for the information of Mr. Secretary MacDonald that the Council are of the opinion that, from a defence point of view, the decision not to proceed with negotiations to purchase outright the New Territories of Hong Kong is not of sufficient importance to be reported to the Committee of Imperial Defence at the present time.

The Council would suggest that the subject might well be reviewed afresh when the present hostilities in China have reached some definite conclusion, and that the attention of the Committee of Imperial Defence might then be drawn to it, though they feel that the primary factor in the matter will then be the commercial value of the territory in question.

I am,

Sir,

The Under Secretary of State,

Colonial Office.

Your obedient servant,

At Widdow's