CONFIDENT I AL

advse or finely balanced. In the latter case the involvement of

UMELCO, if this was emphasised in press reporting, would be

particularly embarrassing for us and could detract from the support which Unofficials are on record as giving to the agreement.

4. I do not think that we can do anything beyond following this

development closely. If the matter was to arouse public comment in Hong Kong I think it would be undesirable for the Hong Kong

Government to be seen to be actively defending UMELCO's decisions: hence the last two sentences of my telegram. We must as sume,

although the Governor does not respond on this point, that it has

been taken on board.

Azwał

A C Galsworthy

18 October 1984

Hong Kong Department

CONFIDENTIAL

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