COMMONWEALTH

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P.S.65 Ms Hando Sui A. Galsurvky

RUSSIAN PROPOSAL FOR AN INTELLIGENCE

ESTABLISHMENT IN HONG KONG

My WI Carter. action P.S.LOPUS

You will wish to know that, when he

visited this country in February, Mr. Kosygin

told the Prime Minister that the Russians would

like some kind of representation in Hong Kong

to gather intelligence on China. Before

consulting you or the Governor of Hong Kong,

I thought it best to consider whether or not

this proposal was a starter in the light of more

general considerations about our relations with

the Soviet Union.

I have now carefully examined the whole

question, including the risks it would involve

to our relations with China. I have decided

Kosygin's proposal is unacceptable, not least

because the Chinese would find out, interpret

the admission of the Russians into Hong Kong

as a very unfriendly act and would be likely to

take counter-measures against the Colony. There

were also strong technical objections from the

intelligence point of view.

However, I do not wish to turn down Kosygin's

proposal out of hand and I am proposing to suggest

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