FORM OF WORDS

the Governos,

While the Attorney has accepted clause 2 of our draft

Order, he has expressed a preference for omitting clause 3,

and has maintained this view in spite of a discussion with

the departmental legal adviser and myself. The departmental

legal adviser still feels that, as a matter of law, it is

within Her Majesty's power to make provision as in clause 3

if this course is desirable on political grounds, in spite

of its admittedly novel character. He recommends that we

hould await Chinese reactions and, if these are favourable,

return to the charge with the Attorney in the light of any

further direction that the Secretary of State may see fit to

give.

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