SECRET
ii.
iii.
with Mr lladdon-Cave but rather to assess his views
and the atmosphere. There is a very clear shift in
in his views. At the same time, the atmosphere is
good, particularly as a result of Mr Barratt's visit
to llong Kong.
Mr Haddon-Cave himself recognised that if Ilong Kong
were locked in, there was no need in the short tem to
give them a guarantee. The point, however, perhaps is
not only what we need to tide us over the next six
months, but what we envisage thereafter. On that it
would seem clear enough that, having re-established the
sort of relations that we want with Hong Kong on
sterling questions, it would be well worth keeping
these in good repair.
Both sessions which I had with Mr Haddon-Cave were
very informal. While I have no doubt that all Mr
Haddon-Cave said to me reflects his real thinking,
the exact way in which any proposition was put to
Hong Kong would nonetheless have to discount
appropriately the frankness and friendliness with which
Mr laddon-Cave spoke.
28 January 1974
SECRET 3
PHR Marshall