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

the

Ceder

X

The catchment area is out- side the leased territories.

(intl.)H.M.

Not accordin to mapon

the

then file.

The

This is important

o

the N.T. which were dependent on the preferential

markets within the Empire, their owners, who would

be Chinese, would be valuable advocates for retaining

the New Territories within the Empire. I.e. mv idea

would be to establish trade in order to retain the

flag.

I agree that there are certain parts of the

N.T. which are essential to the economic life of the

y

Colony, but I think that they are only the waterworks

and the aerodrome, and I don't think either of these

are very far North. The real argument for retaining

the N.T. must I think be the strategic one; i.e.

their retention is an imperial and not a local interest

because it seems and it is the Empire not the Colony which should day

The that all the

governors acuments

ayments if there is any paving to be done; though I do not

fall to the round f Haus. If the

H-US. New Territories s not a self. Supporting wit

DSA.

3/2/390

is chored

exclude the possibility of a Colonial contribution,

e.g. from the surplus in the Currency Security funds.

(Sgd.) G. L.M. Clauson.

30.1.39.

It is unnecessary to recapitulate all the arguments

recorded in the 1938 file as to the essential dependance

of Hong Kong on the continued use of the Leased Terri-

tories or at least of the major part of them. Sir C.

Clementi ouite recently impressed the point upon me

and expressed the view that we should be continuously

watchful for a favourable opportunity of stabilizing

the position. To this extent, therefore, the report

which we are awaiting from the Board of Trade, though

it will no doubt be very valuable, is not, I suggest,

likely seriously to affect the general argument

*

that