the next eighteen months or so which are

likely to be very direct. Second, and

this is perhaps rather a corrollary of

the first, it is of fundamental

importance to our position in Hong Kong

that we should inspire and maintain

public confidence in the Colony. In

view of the real trust which the Chinese

inhabitants in particular repose in

Sir David, an extension of his term of

office would in present circumstances be

regarded locally

and elsewhere

as

reassurance of the continuing steadfastness

of our policy there. Third, the

traditional source of Colonial Governors,

the Overseas Service, has virtually dried

up and an additional year's grace

would give us valuable time to consider

the next appointment which, in the

history of the Colony is likely to be a

crucial one. Fourth, the Colonial

Secretary in Hong Kong is to be offered

the post of High Commissioner for the

estern Pacific when the present High

Commissioner, Sir Robert Foster, is

transferred to Fiji at the end of this

year. In the present circumstances there

would be obvious dangers to Hong Kong if

STAFF IN CONFIDENCE

/both

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