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CONFIDENTIAL

CABINET OFFICE

LONDON SWIA 2AS

4th October, 1973

Secret of State.

Ref: A05306

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In a minute of 20th September to the Prime Minister, your Secretary of State said that he was concerned about the state of Hong Kong's relations with us, and he mentioned a number of issues which had affected those relations. He asked that in all matters relating to Hong Kong the Departments directly concerned should remember that Her Majesty's Government as a whole have a responsibility towards the Colony and that we must try to reach agreement on a course which seeks to balance the United Kingdom and the Hong Kong interest across the whole field. Copies of the minute were sent to the Chancellor of the Exchequer, the Home Secretary, the Secretary of State for Defence, the Secretary of State for Trade and Industry, the Attorny General and the Minister of Trade and Consumer Affairs.

The Prime Minister has said that the Defence and Oversea Policy Committee should undertake a general review of our rleations with the Colony and that we should seek to resolve any outstanding issues.

Since a number of Departments are concerned I think the best way of getting this off the ground would be to set up a group at the official level in the GEN series under Cabinet Office chairmanship which could prepare a report for DOP to consider. I hope that you and the other recipients of this letter will agree to this suggestion and that you will be prepared to nominate someone to serve on the group. I would ask Howard Smith to take the chair and we would provide the Secretariat.

This letter goes also to Douglas Allen, Arthur Peterson, Ned Dunnett, Antony Part and Tony Hetherington.

Sir Denis Greenhill, GCMG, OBE

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(John Hunt)

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