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TRACE WITH HONG KONG. CATER ENQUIRED WHETHER GUCH A GROUP WOULD
CAFLY ANY WEIGHT IN PEEING. CONTACT TINGGIATELY AND CONFIDENTLY SAID
THAT HE WAS CEPTAIN THAT FEKING UOULD BE PLEASED TO HAVE DUCH A
GROUP IN EXISTENCE AND IT WOULD BE PARTICULARY IMPORTANT IF CATER
WERE ITS CHATEMAN. CONTACT EMPHASISED THE IMPORTANCE OF SELECTING
THE RIGHT DEMBERS. THEY WOULD HAVE TO HAVE THE FULL CONFIDENCE AND
BACKING OF THE HONG KONG GOVERNMENT. IN RESPONSE TO CATER'S ENQUIRY
CONTACT SAIR THAT HE PERSONALLY WOULD NOT OBJECT TO SERVING. THEY
THEN DISCUSSED ONE OR TWO NAMES, SOME OF WHICH WERE REJECTED
BY CONTACT ON THE GROUNDS THAT THEY WERE TOO SOFT TOWARDS THE
COMMUNISTS. CONTACT ADDED THAT AS SOON AS WE COULD CHOOSE THE
MEMBERS, THE GROUP SHOULD BE FORMED RIGHT AWAY. CATER SAID HE WOULD THINK ABOUT THE PROPOSAL, WOULD TALK TO CONTACT AGAIN
ABOUT IT ON 17 OCTOBER, BUT THEN WOULD NOT BE ABLE TO SEE HIM
AGAIN FOR ABOUT THREE WEEKS SINCE HE WOULD BE IN EUROPE,
2.
THE CHINA TRADE DEVELOPMENT GROUP PROPOSED IS OF SOME
INTEREST. CATER'S IMPRESSION IS THAT THE IDEA WAS NOT CONTACT'S
OWN BUT WAS PUT FORWARD UNDER INSTRUCTIONS. WE MAY LEARN MORE
AFTER THE MEETING ON 17 OCTOBER. MEANWHILE WE ARE EXAMINING
THE POSSIBLE IMPLICATIONS.
COMMONWEALTH OFFICE PLEASE PASS ROUTINE TO PEKING.
SIR D. TRENCH
FILES:
[REPEATED AS REQUESTED]
Hlio]
Cchied to Palinet Land to Sec. J. 1.8
CO: H.K. DEPT
P.A.D.
P.S. TO LORD SHEPHERD
MR. MASON
MR. ROB
FO: F.E.D.
SIR D. ALLEN
P.U.S.D.
PRIVATE SECRETARY
DIS M.O.D.
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