SECRET
4.
We should therefore relate our present and previous
assurances clearly to withdrawal from the Colony itself. Sir
A Royle's letter gives us the opportunity to do so, since
neither in his letter nor in Mr Ennals's replies was there any
specific reference to a military withdrawal alone.
5.
Sir A Royle also asks about a speech by Mr Frank Judd in
Portsmouth on 20 April. This is really an irrelevance. Mr Judd
has confirmed to us through his Private Office that he did not
mention Hong Kong.
6.
Nevertheless we cannot reply to Sir A Royle without
mentioning the Defence Review. This would only raise suspicion
unnecessarily. The public speculation in the BBC and the news-
papers about military withdrawals from the Far East (including,
in some reports, Hong Kong), came after Sir A Royle's letter
was written. We can however refer to it, using the line agreed
with the Ministry of Defence, that all such reports are pure
speculation.
7. I submit a draft letter to Sir A Royle accordingly.
Mr Youde, Defence Dept and the Ministry of Defence, including
Mr Judd's office, have agreed.
8 May 1974
Сс
Mr Youde
Sir D Watson Mr Jackson
SECRET
Disc
A C Stuart
Hong Kong & Indian Ocean Dept.