CONFIDENTIAL
P12
"Now back on the traditional course" Not so (see above).
Second Para "Significant damage had been done. Chinese suspicions had been reinforced and their hostile analysis of British policy seemingly vindicated". A further apologia for China's unreasonable position.
Sir P Cradock: Noted.
P13
- "Losses inflicted on Hong Kong", "costly and unnecessary lesson in reality". What losses? Hong Kong economy burgeoning, Hang Seng hitting new highs confidence solid etc.
- "A struggle to satisfy British amour propre at the expense of a British colony". Factually incorrect. No such motivation was present on our side.
Sir P Cradock:
Noted.
jm.lett.JM
CONFIDENTIAL
SLM