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Paragraph 3.

It is clear from paragraph 2 above that the Hong Kong Government did not act precipitately in

this matter. They took care to issue warnings to the Union concerned (and to others) and to wait

until those warnings had been ignored before they instituted legal proceedings. It is true that the Governor did not specifically seek the Department's approval before instituting these proceedings, but he

did refer to the matter on no less than three

occasions in the course of routine Local Intelligence

Committee reports which were conveyed to us in Hong Kong telegrams numbers 404, 445 and 484.

Paragraph 4.

With respect to Mr. Foggon I do not think that his minute takes full account of the political aspects

of the situation. It has always been a moot point

as to how far the local communists should be allowed

to go in breaking the law before action is taken

against them; but to allow them to do so indefinitely would only undermine confidence in the

Colony. It is true that Mr. Denson in Peking has commented adversely (Peking Telegram No. 435) on the possible repercussions of the case on Sino/British relations and has asked for some advance warning in ve CE developments of this kind.

we

In fact, he

eer as the

received the same warning as we did contents of Hong Kong telegrams Nos. 404, 445 and 484 were conveyed to him by savingram from Hong Kong. However, I think Mr. Denson has some ground for justifiable complaint and the Governor has undertaken to give more specific and appropriate warning of future cases of this kind (Hong Kong Telegram No. 149 to Peking).

5 August, 1969

Thank these pips agand

agan you

ART.

(A. W. Gaminara)

Hong Kong Department

10 Septeron.

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