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The Gwenom today to advise that discussions in the US interest in what we do in Hong Kong is likely to be less than in our plans for other parts of the world if we intend to keep force levels of a reasonable size there, and we do not need to consult them formally before we start formal negotiations with the Hong Kong Government. need only be kept broadly informed.

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There are three other fields in which we could also consider action before long:-

(i). Cyprus It seems likely, after recent

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events, that we shall have to discuss before long with the Americans, and possibly thereafter with other interested parties, what our future plans for the SBAS and the intelligence effort on the island should be. Preliminary FCO views on the subject are already being submitted to the Secretary of State in preparation for further consideration by the Defence Review Steering Committee's Sub Committee and thereafter by Ministers, probably in the second half of September if not earlier. The Americans could hardly be surprised and could certainly not object if we indicated that we wanted to discuss Cyprus in isolation, because decisions about our long term position there could clearly be a matter of urgency. Mr Healey draws particular attention to Cyprus in his minute and would no doubt welcome early consultations with the Americans about our position there. Subject to international considerations allowed, some public indication by HMG

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