CONFIDENTIAL

روری

42

Mr Youge

PS/Mr

1.

ухаков.

Since drafting the attached submission I have, at Mr Youde's

suggestion, spoken to Mr Cater on the telephone. He conceded that

he had agreed with Mr Royle to look at any new evidence of corrup-

tion that Mr Ellis might put before the Commission when it was

operating. But he was rather taken aback, and nervous of his

relations with the Governor, at the suggestion that he had agreed

that, even in the absence of fresh evidence, the Commission

Against Corruption would examine the corruption aspects of the

Ellis case once again. I agreed with him, however, that they could

do so, if Mr Ellis would expand on his allegations against the

"corruption conspiracy" that he claims is behind his case. I have

accordingly expanded the draft letter to Mr Royle slightly, in

order to square Mr Cater's position with what Mr Ellis has already

been told by Mr Royle.

2.

However I have also spoken to Mr Guest, who considers that

Mr Blaker would not now wish to send a substantive reply until after

the election. I suggest therefore that we hold the main letter to

Mr Royle until next month, and meanwhile send a holding letter from

Mr Guest in the terms of the first attached draft.

12 February 1974

деве

AC Stuart

Hong Kong & Indian Ocean Dept.

I agree with the interim reply. Ithant

ayou

the substantive reply will weed some amendment beet

that can wait. Jetont

(- 13/2.

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