8.
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The Chinese have invested large amounts in property in Hong Kong in the belief that it was safe. They cannot be allowed to suffer for their faith in the British flag.
9.
Chinese merchants and, however much they may protest, even the Chinese Government, are the last people to wish for its sur- render to them. The Chinese merchants appreciate its importance to them as a channel for import into China, while the Government would be sorry to be confronted with the task of reconstruction after the war, of which of course it would be quite incapable. Apart from that the British and not the Chinese have turned the Colony from a barren island to what it is now.
10. China cannot stand alone for many years and the existence at
her door of a centre like Hong Kong of British law, commerce, enterprise and power is an almost essential support. We wish to see and to help establish a stable and friendly China and we shall fail in that task, if we are weak enough to surrender Hong Kong to factious outcries from whatever source.
11.
This centre of law and order is of as much importance to other western nations, who wish to trade in the Far East, as to our- selves. Some, while admitting this, would seek to make it the ground for a suggestion of international administration; but there are surely enough examples of failure of such governments to turn down such an idea.
12.
The sovereignty itself of Hong Kong must remain British; but that does not preclude a liberal treatment of the Chinese share in municipal affairs and Anglo-Chinese co-operation in many forms of enterprise.
11th December, 1944.
G.W.S.
Chatham House, 10, St. James's Sq., S.W.1.
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