SECRET
with your own thinking. However elliptically any link between the power station and the future were put it would risk giving rise, in our view, to questions in Hong Kong about the future relationship and this in itself could only be an embarrassment to you and possibly a source of weakening of public confidence. It would also carry the risk of leading the Chinese to suppose that we were now ready to talk about the future relationship. Nevertheless this point remains firmly in Kadoorie's mind and he may well wish to take the oportunity of any meeting which he has with you to express this view. Laughton, who may indeed bear some responsibility for putting this idea into Kadoorie's head, would much have preferred that we should have suggested to you that you should raise this matter yourself with Kadoorie at some suitable opportunity. We told him that we would certainly not so recommend to you, but he could assure Kadoorie that his (Kadoorie's) views would be conveyed to you so that both sides knew where the other stood in case either wished to pursue the matter further.
- 2 -
SECRET
K Milford