11. PROBLEM IS TIMING. I SUGGEST ONE OF FOLLOWING THREE EVENTS WHICHEVER OCCURS FIRST, MIGHT BE TRIGGER FOR INFORMING GOVERNOR IN PERSONAL CONFIDENCE.

A. ANY INDICATION, HERE OR IN TOKYO, OR LONDON, THAT JAPANESE ARE LEAKING THE GEC QUOTE APPROACH UNQUOTE(SINCE TOKYO HAVE NOT COMMENTED ON IT ASSUME THEY DID NOT CONSIDER THE REUTER STORY A LEAK).

B. A POSITIVE REPLY FROM THE JAPANESE TO GEC.

C. LORD NELSON'S RETURN TO UK. THE LINE COULD BE THAT FROM HIS TALK WITH GOVERNOR HE HAD GATHERED THAT HE HAD NOT HEARD OF JAPANESE TENTATIVE APPROACH TO GEC. LORD NELSON HAD NOT FELT IT APPROPRIATE TO RAISE IT SINCE HE WAS NOT SURE WHAT POSITION IT HAD REACHED BUT HAVING CHECKED ON HIS RETURN HE THOUGHT GOVERNOR MIGHT LIKE TO BE AWARE ON A STRICTLY PERSONAL BASIS. (BY THIS TIME HADDON-CAVE WILL BE ON LEAVE HE GOES ON 23 APRIL AND THE NEXT ROUND WITH THE JAPANESE, THIS TIME IN HONG KONG, WILL BE IMMINENT). IT MIGHT BE ADVISABLE TO HOLD THIS UNTIL IT COULD BE LINKED WITH A) OR B) IN VIEW OF 9(C) ABOVE.

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12. I HAVE DISCUSSED THIS IN CONFIDENCE WITH WEEDON WHO CONCURS GENERALLY.

ASTON

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SENT AT 17/0903Z RD

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