Mr May's

HKD

OSMAN

Reference/

Mr. Powell,

cd. to SEAD (wire cc. of

my holding letter) Grateful for comments.

1. The attached letter addressed to 4/4

2.

Done

س

3,

CODE 18-78

Sir Arthur Watts plus enclosures has been passed to me

by

Mr Anderson (in Sis A Watts' absence).

In our view, it would be

for HKD to

you send a

saying

reply, and

appropriate

suggest that very brief holding reply

that the matters raised in

his letter are being locked into.

As I s

suggested before when we

spoke about the confidential telegram attached to Mr Cahill's letter, the issue of this apparent security breach should be looked at by SEAD as I asame they were the

recipients of

LAST PAPER

PTO

the telegram

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