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ANNEX A TO COS 1098/3/2/67

COPY OF A LETTER REFERENCE FC 3/8

DATED 3RD FEBRUARY 1967 FROM SIR JOHN RENNIE, FOREIGN OFFICE

TO AUS (POL)

Binti .

EXERCISE CARICATURE

1. We heard, by accident, only a few days ago that a large- scale amphibious exercise was to take place in Hong Kong between 13th and 23rd February. From the information avail- able we had very grave doubts about the wisdom of proceeding with it. You will have seen Commonwealth Office telegram No 203 to Hong Kong and the Governor's reply. I now enclose a copy of Peking telegram No 142, giving the Charge d'Affaires' comments.

2. We have since learnt that the Chiefs of Staff considered this question on 10th January. Neither we nor, I understand, the Commonwealth Office were invited to attend. Your Office have since sent us a copy of the relevant Annex, which shows that the Chiefs were anxious that the exercise should take place but decided to invite the Chief of the General Staff to discuss its possible implications with the Commander-in-Chief, Far East, the Commander British Forces, Hong Kong, and the Governor. The point was made that there might be some danger of this exercise being misunderstood and even construed as provocative. The CGS is, I understand, due to return to London on 3rd February and will presumably report his conversations to Chiefs of Staff.

3.

With this in mind, we and the Commonwealth Office have carefully considered the points made by the Governor of Hong Kong and Hopson in the light of what we know about the exercise and of our estimate of Peking's likely reactions. As a result, we are reinforced in our view that the exercise should be cancelled.

4.

The following are our reasons:

a.

Although similar exercises have been held in Hong Kong before this is on a much larger scale and involves the use of forces brought in from outside. We under- stand that the exercise is in the nature of a "battle" against insurgents. It will involve the use of two commando groups, fighter aircraft and about 30 helicopters, and certain naval units. There would be considerable military activity, including "pyrotechnic" explosions.

1.

The press were told on 26th January (paragraph 6 of Hong Kong telegram No 153) that this amphibious exercise was to take place. It attracted little attention. But, because of developments in China, there is an unusually large number of foreign corres- pondents in Hong Kong, as well as a BBC team. It might be possible to dissuade the British press from playing up the cxercise; but this is by no means certain, and the foreigners will write it up as they wish.

Peking telegram No 142 not attached.

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