Did Britain seriously consider keeping Lion and Princess Royal?
Short answerYes, including possible transfer to Australian or Canadian service.
NotesBritain did consider ways to keep Lion and Princess Royal after their Royal Navy careers became difficult to justify. One possibility was transfer to Australian or Canadian service rather than continued operation in the British fleet. That route could preserve battlecruiser capability while shifting the crewing and support burden to a Dominion navy. The brief passage identifies a contemplated option rather than claiming that any transfer agreement was completed.