SECRET

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It seems clear that the Governor's room for

manoeuvre is exhausted. Therefore we have no option

but to face this delicate problem and seek a substantive

answer. This cannot be done to the deadline of 5 or 6 November (when the official side in Hong Kong must speak in the debate on the Governor's address).

I think that the Colonial Secretary, to hold the position in Hong Kong, will at the least need to undertake

in the Debate that the Governor will discuss this

thoroughly when in London. Sir M Maclehose will be here in the week beginning 1 December.

If the drafts, with which I agree, are approved, the Department will need to submit urgently examining in more

detail the courses of action which are open to HMG.

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Bom Walk

3/11

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