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(b)

ourselves taking the initiative against the Left-wing e.g. by taking legal action against the press, arresting key Left-wing leaders and perhaps deporting them to China.

But

5. At an Executive Council meeting today there was a substantial body of opinion (especially among Chinese members) in favour of firm though careful action against the Left. the choice evidently needs deep thought. Solution (a) would in effect put us in pawn to the Chinese and turn Hong Kong into a second Macau; and I would not think it tolerable unless it were linked with a second decision subsequently to negotiate our withdrawal as soon as possible. Solution (b) would clearly involve the risk of an all-out confrontation with the C.P.G.

6. For the time being I shall of course concentrate on trying to hold the present situation in Kowloon while seeking to reach some understanding with the Left that would eliminate the present disorder. But it would be a great help to me if I could have some indication of your preliminary thinking on the issues in paragraph 5 above. It may well be that within the next few days I shall have to advise that a Minister or senior official should fly out here to discuss the problem in detail; or alternatively that I should return home for the same purpose.

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