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sanction that we could give notice of termination of the Agreement,

provided we acted reasonably; and though we had failed to obtain specific undertakings from the Sultan the recent talks had put us in a better position to maintain that we had acted reasonably should we have to give notice in two or three years' time.

In discussion there was considerable support for the view that having

regard to the difficulty of obtaining firm undertakings from the Sultan,

or indeed of persuading him actually to implement such assurances as he

might give, it would be preferable now to establish a firm date for the

termination of the Agreement. The Sultan was bound to accept our advice

under the Agreement and if he disregarded it this would be grounds for its

termination. It appeared, however, that it was open to us to give notice

of termination of the Agreement irrespective of the Sultan's acceptance of

our advice.

THE PRIME MINISTER, summing up the discussion, said that the Committee

took the view that it should now be made clear to the Sultan that the advice

which the Commonwealth Secretary had given to him regarding the need to

take further steps to democratise the Brunei Government was formal advice

within the terms of the Agreement. We should in addition now give two

years' notice of our intention to terminate the Agreement. The manner in

which such notice should be given and its precise timing in the light of the

formal advice to be given to the Sultan should now be considered by the

Commonwealth Secretary, in consultation with the Attorney-General.

The Committee

Invited the Commonwealth Secretary, after consultation with the Attorney-General, to give formal advice to the Sultan of Brunei under the Agreement on the need to denocratise the constitution of Brunei in the manner set out in the letter attached to OPD(67) 62, and in addition give in the near future formal notice of two years for the termination of the Agreement.

8.

HONG KONG

RESTRICTED

(Previous Reference: OPD(67) 20th Meeting, Item 2)

The Committee considered the situation in Hong Kong.

discussion and conclusions reached are recorded separately.

Their

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