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HW34/2

TOP SECRET

DRAFT LETTER TO COVER DEPARTMENTAL CIRCULATION

OF DRAFT LONG-TERM STUDY ON HONG KONG

and

I enclose a complete draft of all sections of the Defence

Review Working Party's long-term study on the future of Hong Kong.

Sections A-E were originally circulated under OPDO (DR)(17)52

of 18 August. They have been revised in accordance with the minutes of the Working Party (OPDO(DR) (67)35th Meeting, Item 3), Cooper's letter D22/9B of 24 August je Annex B of OPDO(DR)(67)56

of 6 September. The opportunity has been taken to introduce

a few other minor amendmente some made necessary by the

passage of time (e.g. updating of the sterling balances figures in paragraph 14 of Section B and deletion of the reference to

"the maritime force from Australia" at the end of paragraph 3 of

that Section).

There are some points to be considered on Sections A-E in

their present form -

mslp (11) I think you will agree that in the light of developments

Section D: Chinese Intentions needs extensive revision;

perhaps we should look again too at paragraph 9 of

Section C.

Conclusions (f) - (j) in Section G

purport to cover Section D. They do not in fact do so

as the Section is now drafted: I have used these

conclusions as a vehicle to suggest the lines on

which a new Section D might be framed, (You will no

doubt realise that I have drawn on JIC(68)15 (Final):

The Threat to Hong Kong, of which we shall need to take

account). When we do revise Section D, I hope that

it may be possible to compress these particular

conclusions.

/ (11)

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