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deadlook over exit visas for the Mission. The ships themselves

are similar in appearance to strike carriers which the Governor

regards as "potentially controversial", but they are somewhat

smaller. They have apparently been mistaken in the local

communist press for strike carriers though I would suppose that

the Chinese intelligence have a very accurate record of the

various types of American naval vessels which visit Hong Kong

and can distinguish between them. For this reason and in view

of the changed position on visas, I think that in the interests

of Anglo-American relations and because of the benefit of naval

visits to Hong Kong financially and in terms of morale, we

should agree that these two categories of vessel be deleted.

7. The arguments against seeking to reduce the length of

stay of nuclear vessels to under five days seem to me conclusive.

I doubt if the unfavourable effect such as it is on the Chinese

would be much reduced if say the vessels stayed for only three

or four days.

8.

The American objection to our seeking to restrict the

number of visite of nuclear-powerad vessels presents more

difficulty. The Governor has categorised such visits as

"particularly controversial" and there is no doubt that the

Chinese have paid particular attention to them and are likely

to continue to do so particularly after the publicity occasioned

by the visit of a nuclear submarine to the Japanese port of

Sasebo when it was alleged (apparently without any foundation)

that there had been a leakage of radio-active material into

harbour. It is true however that the visits of smaller nuclear

CONFIDENTIAL

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