AW5AEP
RESTRICTED COVERING SECRET
From:
Sir Arthur Watts
Legal Adviser
Date:
25 April 1991
CC:
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).
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RESTRICTED COVERING SECRET
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