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Mr. Seel
You asked for my views on Mr. Butters' suggestion that we should seek a solution of the "military lands" problem, as an alternative to putting forward the proposals for financial assistance from the U.K. Exchequer.
We should, of course, have to consult the Governor before mentioning this alternative to the Treasury. I doubt whether the Governor would agree, and in any case, while I appreciate the advantages which might accrue to Hong Kong from a satisfactory settlement of this military lands problem, it seems to me that the prospects of an early and satisfactory settlement are so remote that we should endanger Hong Kong's chances of receiving any assistance within a reasonable period if we put it forward as an alternative. The Treasury naturally would jump at it.
I hope, therefore, that it will be decided not to pursue the idea, and that it will be possible to get our letter off to the Treasury very soon.
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16.2.48.
Sir Sydney Caine.
You left this with me on Saturday. It would be useful if you have time to indicate your preliminary views on Mr. Butters' suggestion before you leave.
There is no doubt that Hong Kong have a good case for revision of the present situation in regard to the "Military lands". But I feel bound to agree with Mr. Mayle in deprecating any suggestion that a solution of this problem should be put forward as an alternative means of post-war settlement between H.M.G. and Hong Kong. We ought to take up the "Military lands" question as a long-term one, but no-one who has had any experience of dealing with the Service Departments in matters of this kind would expect any result except after years of protracted argument, by which time, the opportunity of making any gesture at all of participat- ion in meeting the losses of war would have long passed.
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