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in China for cove years after the war, Hong Kang is likely to acquire increasing importance and value as a base from which British merchants and industrialists can operate in China.

(c) Having lost Hong Kong to the enemy, it is a point

of national honour for us to recover it, and restore it to its normal state of order and prosperity.

7. The most recent offid al statement on Kis Majesty's Government's policy towards Hong Kong was made by Mr.Attlee, then Deputy Prime Minister, on the 8th November, 1944, in reply to a question in the House of Commons by Mr. stor as to whether liong Kong or any other part of the Empire was excluded from the Prime Minister's declaration that it was not proposed to liquidate the British Empire.

ttlee replied:-

"No part of the British mire or Commonwealth of Nations was excluded from the scope of the declaration referred to."

The following supplementary question was then put by Mr. Astor:

"While expressing great pleasure that this declaration has come from the Leader of the Labour Party, may I ask him whether all encouragement will now be given to British firms to prepare plans for re-establishing themselves in Hong Kong and getting on with British export trade in that area?"

To this Mr. Attlee replied:

"That is obviously so."

B*

Indications are that the Chinese expect the present British Government to show a less instransigent attitude in regard to the future of Hong Kong than was displayed by its predecessor and by the late Prime Minister in particular. As the question may be raised by the Chinese at any time arter the end of the Far Eastern war and will quite probably be raised before then, it is desirable that the attitude of His Majesty'a Government towards it should be decided at an early date.

J. S. B

ア

FAR EASTERN DEPARTU ANT,

FOREIGN OFFICE,

3rd Augist, 1945.

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