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formal proposal by the Government of Hong Kong and on the

actual papers, not merely on the Governor's say-so, as in his

telegram. We cannot complete this procedure before the 19th.

Nor would it be safe for the Governor to announce that this is

what he is recommending. This could, at least in theory,

produce another public conflict between the Governor and the

Secretary of State on the lines of the Tsoi case.

4. However, we have aie already agreed that another

regulation (Colonial Regulation 59) can also be used to retire

an officer compulsorily, in cases where he has been acquitted,

but where his reputation is such that his retention in the

public service is no longer in the public interest. We

suggested a formula in para 5 of FCO tel No 1000.

practical difference is that under Regulation 59

normally have a right to a pension.

5. We can and should agree now that

The only

would

retention is

clearly no longer in the public interest.

This will make it

possible for the Governor to announce on the 19th, if he

decides this is necessary, that

is to be retired.

He

can then send us his formal recommendation and the papers and

we can decide whether the use of Regulation 55 or 59 is

appropriate. This should meet the Governor's immediate need.

6.

I submit a draft telegram accordingly.

legal adviser has agreed.

The department's

18 October 1973

CONFIDENTIAL

AcStia

A C Stuart

Hong Kong & Indian Ocean Department

18/10

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