UK XL/1

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29 Novecber 1968.

23rd

Deux hawrence,

Long Term tudyi For ons

You will wish to know the position reached in the preparation of this study. There have been some aubstantial changes since it was last circulated as OPDC(DH)(6)5 (Bevise) of April and considered by the Defence Review Working farty on 26 April (OPTO(DR)(68)2th Feeting). I attach a copy of our latest draft.

2.

In Bay the Commonwealth Secretary discussed the draft then current with the Governor of Hong Kong and instructed that the study should take full account of the latter's views, The exchanges thereupon initiated with the Governor mere continued in June/July when heath Kason visited Hong Kong and in October when the Governor arrived here on leave. The attached drait takes full account of the Governor's viers.

3.

The Tar Castern Department consulted Tonald Hopeon when he came out of hina in gust and the revised draft taken account of his views.

epartment have also up-dated Section on Chinese Attitudes and Intentions in the light of more recent developments in China and the present state of Sino-British relations.

4.

Compared with OFTC(CH)(68)5 (Revise), the attached draft contains substantial revision of actions and 0 but quite amall changes in sections - and F. So changes have been shown to other decurtments with the sole exception of the changes in paragraphs 17-19 (including the pencilled additions to paragraph 19 and to the corresponding Conclusion (a,) which are being considered by the "inistry of Defence, who have yet to acree ther.

5.

I feel gone uncertainty about how to proceed. it la the foreign and Commonwealth ecretary's wish that the paper should be sulmivted to the Hong Kong Ministerial ommittee before being taken in OFC and that. I understand, has always been the intention. But I look to you for advice on the need first to clear the paper at official level and the way in which this should be done.

II. 4. LAWRC30- ILSON, CABINE CIS.

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