CO129-580-6 New Territories 6-1-1939 - 16-8-1939 — Page 4

value of the arguments contained in this letter,

as far as economic considerations are concerned,

until we have had the Board of Trade's views on the

subject: and for this reason I suggest it might

perhaps be as well to write to the B. of T.,

explaining that we have had a further communication

from the Governor urging that the matter should be

given consideration without delay, and asking

whether the B. of T. have as yet reached any

conclusions on the point mentioned in our letter

registered at 37 on the 1938 file.

1. N. Galsworthy

26.1.39.

I read between the lines of this letter criticism of my handling of the question at the meeting of the 26th August. Sir G. Northcote was not there, and does not know the atmosphere of the meeting. It was clear from the outset that the Treasury had no intention whatever of entertaining any proposal for the payment of a large sum to China t the present time for the extension of the lease of the New Territories. Their representatives were entirely hostile, and threw ridicule on the whole proposal. It was impossible to get any adequate support from the Defence Departments, who were unwilling to commit themselves as to what their policy would be in 60 years time. At the back of their minds was obviously the feeling that if, when the time approaches, our retention of the new Territories is thought to be essential for purposes of Imperial derence, we shall simply stay there, and our attitude will not be affected by ny possible approaches at the present time to such government or lack of government as exercises nominal control