Mr Donald

Hit 415/L

BAD

- 8 JUN 1981

DESK OFFICER

IRI

PA

CONFIDENTIAL ADMIN IN CONFIDENCE

cc: Mr McLaren FED

REORGANISATION OF ASIAN DEPARTMENTS

1. I raised with the Governor in Hong Kong the question of a possible

merger of our Hong Kong Section with the present, or a fined down,

Far Eastern Department. I said that we were not happy at the idea

of such a merger and asked for his views.

2. Sir M MacLehose said that he would prefer to be consulted by letter

for a definitive view. His off-the-cuff reaction was that the people

involved and their experience were more important than the administra-

tive sector in which they operated. Having said that, he thought that

if Hong Kong affairs were to be dealt with in a large Far Eastern

Department, there would need to be a Grade 4 Deputy with special

responsibility for Hong Kong. Contrary to his earlier letter, he did

not altogether rule out the idea of a China/Hong Kong Department on its

own, provided that the necessary expertise on Hong Kong affairs was

available. I suggested that this might cause political difficulties

in Hong Kong. He thought that this was not necessarily so and that

Unofficials and others might accept that the inter-relationship of the

China and Hong Kong issues would make a merger a logical move.

3. This does not advance our case much. My own personal view remains

that there would be some political disadvantages in a merger. I

understand that you are to hold a meeting on this subject shortly,

perhaps we could consider after that whether or not we wish to go back

to the Governor.

Filip

26 May 1981

CONFIDENTIAL

R D Clift

Hong Kong and General Department

ADMIN IN CONFIDENCE

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