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3 -

Paragraph 16 (cont.)

Last sentence:

For "in the face of a deteriorating situation" read

"in the face of a sharp deterioration in the situation".

General Comment

Would it not be clearer for Ministers when we come to the section on "Courses of Action" to begin by stating clearly that there are four possible courses we might take. These are:

(a) To continue with our present policy in the hope that we shall win through. This will, however, inevitably require increasingly firm action by the Hong Kong authorities resulting in even stronger counter-measures for the time being by the local communists supported by Peking.

흐흐

(b)

(c)

To be prepared to accept a Macao type situation.

Cne point

To organise an orderly withdrawal now. we should make here which is not included in the present draft is that Peking would not be prepared to negotiate en orderly withdrawal as their intention is to humiliate us.

(1) If (a) fails we may then have to carry out an

emergency evacuation for which, in spite of all the difficulties, we should have contingency plans available now.

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