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3. Question of NCNA hore is not seen to be particularly relevant.

Its representatives are of course no danger to internal security here

they are in Hong Kong) and any action against then would be

purely retaliatory. Home Office agreement is required and consultations

are proceeding with a view to deciding what action might be taken if

any should be considere¿ necessary or desirable.

}

4. The paramount consideration is the need to maintain internal

security (and therefore public confidence and morale) in Hong Kong.

We must leave it to you to decide whether in the local circumstances

such measures as you propose are required but we hope that you can

hold your hand as long as possible.

(83247) (J) 300M

10'65 81.8.

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NOTHING TO BE WRITTEN IN THIS MARGIN

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