SECRET

(ii) By the same fact we have admitted the doubt about

jurisdiction in a case that can be quoted against us in the future.

(iii) We shall be at a loss to explain it to the public

without either telling the truth, which would be disadvantageous and discreditable. which would be worse, and which no one would believe

or an untruth, in view of the publicity already given to the case.

S

iv) This course is open to renewed charges by the

Chinese Government that the Hong Kong Government has refrained from appropriate action against the Triads, which to them are the same as the Kuo Min Tang elements,

(v) The Chinese Government might refuse to admit him or

alternatively admit him and exploit the whole incident in ways and at a time of their choosing on a basis of statements taken from him,

(Copies sent to Foreign Offise for repetition to

Peking.)

Copies sent to:-

Foreign Office

Law Officers Department

3 1

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Mr. P. G. F. Dalton Mr. MacDonald

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