Dratton 19676/17/48.
AIR MAIL
3
My dear Grantham
1025
Colonial Office,
Sanctuary Buildings, Great Smith Street,
London, S.W.1.
14 September, 1948.
We have recently been considering Dixey's Report on Geological Survey, Water Supply and Mining Control in Hong Kong, received under cover of your note No. 3/3371/47 of the 2nd July.
Dixey has, of course, not taken into account the political issues which might arise if valuable deposits of minerals were discovered in the New Territories. We have been wondering whether for that reason it is desirable to go ahead quickly with mineral prospecting and development, so that any expenditure incurred could be recovered before the termination of the lease of the New Territories, or whether, in view of the possible precipitation of a Chinese demand for the premature surrender of the New Territories in the event of valuable geological discoveries, it might be advisable to afford no particular priority to the proposed geological investigations at this time of scarcity of man-power and materials.
You will see from the Secretary of State's despatch No.294 of the 14 September that he has had his attention drawn to the question of mining control in Hong Kong. In view of these representations we feel that it may be difficult to justify any further delay in granting prospecting
SIR A. GRANTHAI, K. C.hi. G.
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