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Secretary of State.

If Sir Alexander Grantham has no prior word from you about the decision reached last night and that is broken to him without warning by Mr.Alexander, he may well take it amiss and the result may be just what you would, I imagine, wish to avoid i.e. he might regard the decision as a sign that he has forfeited your confidence and ask in consequence to be released from the Governorship of Hong Kong. I hope therefore that you will agree to send Sir Alexander a personal telegram, timing it to arrive 24 hours or so ahead of the Minister of Defence. Much the best plan would be to tell Sir Alexander of the decision in your telegram; and I hope that you will feel able to do that. But if you do not, I suggest that you should say that M.Alexander has been authorised, while on route to Hong Kong, to discuss with him the contingency of a clash between defence and other interests in the Colony and to convey to him the formula upon which Ministers have agreed to resolve that contingency should it arise. Your telegram could go on, much as did the draft letter prepared yesterday, to express the hope that this formula will be acceptable to the Governor;. and the letter could conclude, again as did the previous draft, with your confidence in the Governor.

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