AW5AEP

Mr

просо

29/4

RESTRICTED COVERING SECRET

From:

HKD 384/1 Date:

RECEIVED IN REGISTRY

1 MAY 1991

OFSK OFFICER

INDIA

PA

CC:

9/4.

Pl~ Submission

(25)

Sir Arthur Watts Legal Adviser

25 April 1991

PS/PUS

Sir J Coles

Mr Parker, Leg Advs HKD

Security Dept

Mr Guy, SEAD

PS/Sir Robin Butler

[LORRAIN OSMAN: ALLEGATION OF CORRUPTION BY FCO OFFICIALS]

1.

I have read all these papers carefully. They leave us with no easy way out of what could become a messy bit of publicity. But I agree that the proposed letter to Mr Cahill represents the legally prudent course in the circumstances (subject to a small amendment which I have explained to Mr Guy, who is content).

2. Generally, I would just note that while the submission and draft letter focus on the possible publication of a confidential telegram from Hong Kong, Mr Cahill's letter is about corrupt officials in the FCO, and the telegram is almost incidental. The allegation of corruption is firmly rejected at the outset of the letter. Against the possibility that this point might be pursued it might be advisable (if this has not already been done) to have on record an account of the steps taken to look into Mr Cahill's allegations (which, of course, if substantiated would be extremely serious, and we ought to be in a position to demonstrate that we have treated them as such).

Abath

A D Watts

28

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