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5. I DID NOT OF COURSE REACT TO THE SUGGESTION THAT WE SHOULD FLOAT

THE JOINT CONSORTIUM IDEA TO THE HONG KONG GOVERNMENT THIS MONTH.

I SPOKE HOWEVER OF THE NEED TO GET THE TIMING EXACTLY RIGHT: WE

COULD UPSET THE APPLECART BY DOING THE RIGHT THING AT THE WRONG

TIME.

6. YOU MAY CONCLUDE FROM THIS THAT FROM OUR POINT OF VIEW THE

JAPANESE END IS BETTER UNDER CONTROL THAN I NOW FEAR TO BE THE CASE

IN HONG KONG, WHERE THE INCLINATION TO SLIP SEEMS STRONG, YOU WILL HAVE IN MIND THE MINISTER (TRADE)'S FORTHCOMING VISIT TO BOTH

HONG KONG AND JAPAN.

7. OZU SPOKE MOST CORDIALLY, AND I JUDGE GENUINELY, OF THE VALUE

OF EID'S RELATION WITH US AND HIS WITH YOU.

8. AN OPPORTUNITY DID NOT ARISE TO MEET UNOBSTRUSIVELY WITH GRANT

OF JARDINE'S. THE EMBASSY WILL SEEK AN EARLY OCCASION TO SOUND !

HIM OUT DISCREETLY ON IT IS CURRENT ESTIMATE OF THE JARDINE/

JAPANESE POSITION.

CROMER

EXCED DISTRIBUTION

HKIOD

FED

NAM D

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CONFIDENTIAL

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