appreciation prepared by the Commanders-in-Chief, Far East, but on which we have been having some recent discussions with J.P.3.). As to what else should
go into the paper, we cannot, I think, get on very fer with the matter of policy in relation to Chinese Political Parties until we have received replies from Hong Kong and Nanking to our telegram No. 302 to Hong Kong of the 17th march. But the reference to "internal political policy" in the quotation from the minute above suggests. to us that we shall be expected in this paper to deal also with the form which constitutional develop- ment is likely to take in the Colony. I assume that we shall also have to deal with the possibility of demende from the Communist Government of China for the rendition of Hong Kong, or for the earlier termination of the lease of the New Territories.
We shall also have to deal with questions of trade between Hong Kong and Chins (though on this we shall presumably have to wait for a reply to our telegram to Hong Kong No. 322 of the 22nd March). We may also have to refer to possible political complications arising from the fact that Hong Kong has allowed the U.N.A.C. to establish itself at the Kaitak Airport.
If all these (and possibly other) matters are to be covered in the paper, its production will be
/ quite