SECRET

5.

(including the French) support this view.

As Mr. Hopson points out, the Chinese

leadership might welcome another foreign

diversion. There could also be

a spontaneous reaction by local Chinese in

Hong Kong or Red Guards in the neighbouring

Chinese provinces, which Peking would find

it difficult to discountenance, even if

they wanted to do so.

The Governor of Hong Kong, as is apparent

from histelegram No. 153, is clearly in two

minds about the advisability of allowing the

exercise to proceed. He agrees that it could

cause serious difficulties;

he says that he

would have been far happier if it had not been

planned and that, if a decision had to be taken

now, he would almost certainly have to advise

cancellation as being the only safe course.

!

The Governor also, however, puts the arguments

for allowing the exercise to proceed under

certain conditions (paragraph 9 of histelegram

No. 153). These conditions do not, I must say,

seen desirable or practicable. The first

condition is unacceptable: to stop the

exercise after it starts, presumably under

Chinese pressure would be to give the latter

another "outstanding victory" after Macao.

Also we do not see how we could guarantee,

as the Governor implies, that publicity should

be strictly confined.' As regards the third

condition, even if the narrative is not disclosed

the nature of the exercise would be fairly

obvious. The Governor also auggests that we

can afford to wait a little longer before

deciding to cancel.

There must now be very few

/days

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