Government might subsequently be repudiated by a
Chinese Puppet Government controlled by Japan.
It
ns, moreover, rather significant that the Chinese,
though desperately in need of cash, have not themselves
put forward any such suggestion of this nature.
Unless, therefore, there are any recent developments
in our Far Eastern policy, of which we are ignorant,
which would make it possible for a settlement of this
question to be included in some general policy for
more active assistance to China, we can see little
advantage and, indeed, considerable danger in
raising the question ourselves at the present time.
There seems little more that we can do
in this matter until we have the Board of Trade report.
We hope to get this fairly soon, and, when we do
receive it, we expect to be in a position to send you
an official despatch on this subject.
It is of course pretty clear that, if this
issue is regarded solely as one of domestic concern to
Hong Kong, the Treasury attitude towards any financial
contribution from His Majesty's Government would be
unfavourable at the present time.
You uncerely,
Henry
Moore.
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