FO371-35824 — Page 16

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spread of British influence and demand for British Capital goods.

A

Full consideration must be given to the many thousands of Chinese who have invested large sums in the Colony and paid high prices for property in the firm belief that they were investing under the British flag. It is hard to believe that anyone can now consider breaking faith with these loyal citizens.

In the future, the China Association would like to see much closer relations between the Governor of Hongkong and His Majesty's Ambassador to China. How such closer relations should be established and maintained may present difficulties, but it would appear desirable for the Ambassador to have an official representative of high standing in Hongkong. Further- more, the China Association would suggest that Hongkong should be considered as an Empire centre in the Far East, rather than as the outpost of Empire which it has been in the past. It would appear also desirable that all the self-governing Dominions should have a Representative in Hongkong. This, in the opinion of the Association, would be of great advantage to the Empire and its trade.

In this memorandum, we have refrained from mentioning the matter of the form of Government of the Colony but no doubt His Majesty's Government will have in mind the possibility of a more liberal form than that of the past.

In conclusion it is the hope of the China Association that troops of the Empire will be the means of retaking the Colony from Japan.

I am, Sir,

Your obedient Servant,

(Signed) E.M.Gil

人

Secretary.

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