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(111) Nigel Trench has suggested :-

(a) Putting the Military paragraphs in Section B

rather later on in the Section,

I agree.

(b)

In fact, I think the varicus parts of this Section might be rearranged in reverse order (1.e. Political, Economic, Communications, Intelligence, Military).

Rearranging the material in Section B so that advantages and disadvantages are separately listed. I am not so sure about this, but we might consider it. As a compromise I have gone some way towards this arrangement in framing conclusions (a) - (c) in Section G; this might be sufficient.

(c) Mentioning in paragraph 9 of Section E that,

in the light of past experience, we do not see any future in trying to involve the Americans in the defence of Hong Kong. We might insert the following passage between the second and third sentences of paragraph 9:

"They did not show any disposition ten years

ago to pursue discussions with us about meeting the Chinese threat to Hong Kong and we for our part were wary, foreseeing that any proposal of a formal American involvement might invite difficult and dangeroua American demands for military facilities in Hong Kong which we would find it hard to resist if they were put forward as facilities necessary for the proper discharge of responsibilities they had assumed towards the Colony, These objections are valid today"

Sections F, G and H are new. Clearly you (and others to whom 1 am sending this letter) will went to look very carefully at them. My suggestion is that we should all meet in (say) a week's time to start the process of hammering out a draft for circulation to the Working Party, If anyone feels that radical amendment or major additions are necessary, it would be useful, I think, if he could let me know what he has in mind. It might be possible for me then to table amendments or additions at the meeting.

I am sending copies of this letter, with enclosure, to Wright (Treasury), Nailor (Ministry of Defence) and Trench (Cabinet office).

(W.3. Carter)

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