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PRIME MINISTER.
On the 3rd September, the Chiefs of Staff heard an interesting account on the present situation in Hong Kong from General Grasett who had been General Officer Commanding there until July. From this, one important point arose.
2.
The present defence policy at Hong Kong is that the Island is to be regarded as an outpost and held as long as possible. In describing the tasks of the force in Hong Kong, General Grasett said that of the army garrison of four battalions, one was to be deployed on the mainland and charged with the task of withdrawing to the Island after carrying out extensive demolitions. This battalion was also needed for the defence of the Island. It was essential therefore that it should be safely extricated from the mainland. He pointed out the great advantages to be derived from the addition of one or two battalions and suggested that these might be supplied by Canada.
3.
The Chiefs of Staff have previously advised against the despatch of more reinforcements to Hong Kong, because they considered that it would only have been to throw good money after bad, but the position in the Far East has now changed. Our defences in Kalaya have been improved and Japan has latterly shown a certain weakness in her attitude towards Great Britain and the United States.
4.
A small reinforcement of one or two battalions would increase the strength of the garrison out of all proportion to the actual numbers involved, and it would
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