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Page 27

The telegram at (203) was personal for the Secretary of State. As it was decided not to follow in Defence Committee the line advocated by the Governor in paragraph 5 thereof and as, by decision of the Defence Committee, we are now committed to a long drawn out struggle (with frankly not much discernible hope of a happy issue at the end) on ground not chosen by the Governor, I think, in the Secretary of State's absence, the reply to (203) should go from Sir John Macpherson and I submit a revised draft B accordingly.

I know that what it says is a bit unconstitutional, but we are in danger of getting into a very serious conflict with the Hong Kong Government over this question of the strength of the garrison and the defence contribution and the best we can do to mitigate these possible dangers is to try to keep get our relations with the Governor right.

That is the justification for revealing so clearly that this Department feels very differently about these matters from other Departments of H.M.G.

2. Sir John, and others through whom I route this, could perhaps most easily refresh their memories on what is at issue by referring to (192) which is the Secretary of State's minute, copied to members of Defence Committee, replying to Mr. Sandys' minute at (190). Before the matter went to Defence Committee we had the Governor's telegram at (203). For the reasons given in minutes of 3/2 and 4/2 it was decided nevertheless that the best hope lay in pursuing the compromise proposal about the Service lands which will become available through the closure of the Dockyard. The relevant extract of Defence Committee proceedings is at (205). (206) shows us in the Treasury toils.

3.

Mr. Vile and Mr. Carstairs should see draft B, and also draft C to the Treasury.

4.

Mr. Campbell may like to detach the telegram at draft A and let that go off.

Now gove-(207) ал -27/2.

In Canstar't

(W.I.J. Wallace) 25.2.58.

Page 27

in the

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fill

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answer

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A:

31/12/57

My Achlón's murine of 21/2/58 his

references noted

on draft- Ar the Defence Committee meeting the proposal for the future of the Navy

set out

0(57)28

an the

for

were confirmer adoptiom

basis for further detailed. plaming" (see (2) of (97) on

on Pa 27/05/259837/01). D(57)28 (1) which a

copy is at (90) on Dif127/387/01),

refers to the

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naval

forces at Hong Kong in

The Amsex (mPage 48 Sh283

Page 28pana. 6 and

mi

cotnotes (b) and (f)); the Annex maker

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and

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20/2/58

Recive 15th Campbell for fli Brc.

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208

SN J. Macpherson

Self-explanatory Aff. I submitted.

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