CONFIDENTIAL
9.
never been used although it had once been proposed
to use it in the West Indies; it is understood that
on that occasion Ministers refused to use the
procedure.)
of the above courses the Governor favoured (3) if a decision had to be imposed. He advised very strongly against the use of the official majority. He did not think that there would be any Communist reaction to such a step but he could not say with any certainty what the general reaction in Hong Kong would be. Unofficial Members and the Press might well whip up feeling and there might be further bomb incidents. But more important, a great deal of bitterness would be engendered in relations between HMG and Hong Kong which would take a long time to dispel. He hoped that if a situation of complete deadlock was reached, it would be possible to send an inter-departmental team out to Hong Kong as was done in 1966.
10.
The Governor had one other suggestion to make which, however, he regarded as dangerous. In conjunction with the acceptance by HMG of the Unofficial Members to offer to recommenă
contribution of £7 million per annum for seven years, it would be possible, clandestinely, for Hong Kong to place a sum of £X million
and deposit with HMG for the period of the agreement, giving HMG the benefit of interest on that sum. Such an arrangement could be made without public knowledge in Hong Kong, but it might not be possible for this to be done in the United Kingdom.
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CONFIDENTIAL