CO129-571-16 New Territories 13-4-1938 - 12-12-1938 — Page 92

not be prepared to consider it.

Mr. Cowell suggested that the feeling of

the meeting was that we should not proceed with the

Governor's proposal on the following grounds:-

(a) The absence of data for calculating the

commercial importance of Hong Kong to British trade,

and for estimating the present value of an extension

of the lease of the New Territories.

(b) The fact that from the defence standpoint

the present lease could be regarded as satisfactory

for the time being.

(c) The fact that the Cabinet's decision on

the scheme for a Chinese loan appeared to rule out

such a proposal, in so far as it imported an element

of financial assistance to China, though it was

possible that opinion might have changed since that

decision was taken.

In reply to a

This was agreed to generally.

question Mr. Wardley said that he thought it was hardly

likely that the commercial importance of Hong Kong would

justify the expenditure of such a large sum as would be

necessary, as only some 25 of our trade passed through

Hong Kong. It was agreed that the correspondence should

be sent to the Board of Trade for any observations they

might have to make.

8.