(v)

Death Penalty

SECRET

The Governor had expressed some anxiety about the working of the present informal arrangement. It would be necessary to discuss the situation with him frankly. The Department would submit a paper which Lord Goronwy-Roberts would ask the Secretary of State to study personally.

(vi) The Defence Review

The maintenance of confidence in the Colony and its future was a major factor. It would be necessary to seek the Governor's view on how far the garrison could be cut without undue risks to security and confidence. The present garrison was a deterrent to potential troublemakers by its very presence. It had been suggested that Hong Kong might pay all the costs of the garrison. This, however, would mean that less money would be available for social policy matters, and was probably not a practical option.

(vii)

Administration of Justice

To bring in an outside Advisory Group of eminent lawyers might damage public confidence in Hong Kong's ability to run its own judicial system. The Minister said he would mention to the Governor the concern in legal circles here. He hoped that improvements in the system would continue, but could not altogether rule out an outside Advisory Group if they did not.

(viii)

Corruption

The case of Mr Godber was briefly reviewed. It was agreed that, if he was released on the present charge, the pressure to amend the Fugitive Offenders Act would be re-doubled. If he was returned to Hong Kong, it might ease. We should therefore await the outcome of his case before returning to the Home Office on the general issue.

(ix)

Sterling

There was no longer an immediate problem arising from the disputed provisions of the Sterling Agreement.

(x) Hong Kong and the EEC

The Minister reaffirmed the importance of eliminating discrimi- nation against Hong Kong's textiles and footwear. The Secretary of State would include a reference to Hong Kong's problems in his speech on 4 June.

(xi) Register of Shipping

This would be discussed with the Governor.

(xii) Air Services Agreement

Action rested with Hong Kong.

SECRET

/(xiii) Oil

And

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