5.

But we cannot be sure that the French will not deliberately

undercut us to the point of foolhardiness and there could be some justification for ECGD's concern that we might be faced by a fait accompli. This is the main point ECGD wish us to make to

the Governor in our next telegram; it would of course be

reassuring to know it has been decided to open negotiations with ECGD and therefore that the "Dutch auction" is on. Both these

points are covered in the draft attached.

I doubt

6. The text of the telegram has been agreed with ECGD.

the need for every step in these exchanges to be agreed with Lord Brown (ECGD hold the same view).

courteous to clear the text with Lord Brown's Private Office making the point that the substance has been agreed with ECGD.

(and text)

It might, however, be

5 March, 1969

Copy to: Sir A. Galsworthy

his. Carks

(W. S. Carter)

Hong Kong Department

Telegion desfatihul

6 Marel

Of

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