CONFIDENTIAL

other high-profile events next week; the Chinese are unlikely

to miss it.

6.

Mr Dinham tells me that the Governor is not keen to

accept this award and understands well the potential damage

it could cause. But he also appreciated the downside of

declining: possible offence to the US, unhelpful press stories about bowing to Chinese pressure etc. He was

therefore reluctantly persuaded that it might be better to

grasp the nettle now rather than later.

7.

The deskby 290100Z was to give Hong Kong time to set up

the award ceremony if we agreed that it should go ahead next

week. Mr Dinham said that as we were recommending to the

contrary, the reply could issue tomorrow.

Than

J C Morris

sub.freedom.MORRIS

JEB

CONFIDENTIAL

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