situation in China.

8. The return of Parliament next week will

give me an opportunity to make a statement on

the situation in Hong Kong and to report H.M.G's

support for the Hong Kong Government's measures to

maintain law and order and of our determination

to stay in Hong Kong.

9. We naturally hope that a show of firmness in

maintaining law and order will not lead to an

all-out confrontation with the C.P.G. We ought,

however, to be prepared for this possibility and

I am sure that you have already planned how you

would meet it, and I expect Galsworthy can tell me

about your contingency planning on his return.

10. Your telegram No. 698 has just been

received. Please do not at present say anything

publicly about your intention to go on leave as

this may cause loss of confidence just when the

situation seems to be improving para 4 of your telegon

refers.

}

(Parsed / D.3.AS for repetition to

Peking, POLAD Singaful s

Washington)

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