2. You have said that failure to deregister

would have a very adverse effect on public morale

and would be interpreted as a sign of weakness on

the part of government. We agree that this

might well be the case if it were public know-

ledge that deregistration had been seriously

considered or earlier decided upon or there a

#

general public assumption that the school w

scho

were

would

not be allowed to reopen. But against the

background of the abandonment of violence by the

Communists and having regard to the time lag, is

there not a possibility that public opinion

might regard failure to deregister as no more than

a gesture by government to encourage a return to

normality?

3.

It would also be helpful to know whether

there are any alternative courses open to us,

e.g. whether it would be possible to cancel the

registration of present staff and management,

Premises

leaving it possible for the school to reopen

school/ to

under fresh (communist) auspices. If this

particular course were feasible, would it not in

public eyes constitute sufficient punitive action

against those who so clearly overstepped the

acceptable limits and provide some insurance

that they could not again indulge in similar

activities? It would certainly enable us to

maintain that we do not object to communist

schools as such (paragraph 5 of Peking telegram

under reference).

4. Before reaching any final view we should be grateful to receive your further observations. (8430 Dd.033946-600...

G>W<Briztd:~Gp,863

Issue.

24,

6.

63.

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