CONFIDENTIAL

2.

ready to enter dry dock on

In addition, if the tanker is not ready to

8 September at the latest, she will lose the dry dock booking

and face eight weeks further delay.

AS

there is still at least

five days preparatory work outstanding, the guarantee will have

to be given over the weekend.

5.

The timing of this case is complicated by the critical stage

which the RUDD BANK case has reached. The Department submitted

yesterday a draft letter to No 10 Downing Street indicating that

a decision might need to be taken on a further guarantee if the

Japanese continued to raise difficulties. If they were to learn

that a guarantee was being given by us to the Singaporean Authorities

while they were making a final policy decision on whether to allow

the RUDD BANK refugees to disembark without such a guarantee, it is

probable that the RUDD BANK case would be significantly complicated.

It would be preferable therefore if no announcement could be made

about a guarantee in the case of the BRITISH RESOLUTION until we

know that the RUDD BANK case has been resolved. The Resident Clerk

will need to keep an eye on this over the weekend.

TCS Stitt

30 August 1979

South East Asian Department

CONFIDENTIAL

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