ANNEX
AIDE MEMOIRE
HONG KONG COMMAND AND GOVERNMENT
The Governor of Hong Kong has recently suggested that there is likely to be a clash between trading and defence interests in Hong Kong. This was fully discussed at a Staff Conference this morning at which the Minister of Defence, Mr Malcolm MacDonald. the Chiefs of Staff, General Ritchie and representatives from the Foreign Office and Colonial Office were present.
2.
There was general agreement that the real importance of Hong Kong at present is not so much as a trading post or as a potential fortress but because of the effects of what is done there upon the Cold War. This must govern all decisions.
3.
It was also generally agreed that the present Governor, for all his deep knowledge of Hong Kong and his many admirable qualities, lacks the one quality vital at the present time - of leadership.
4.
Leadership, not only in military affairs but in economic affairs and government generally, is essential now to Hong Kong both for putting the Colony into a state of defence against external aggression and for preventing the more likely threat to its safety from within, resulting from poor morale.
5.
There is no other person available with the necessary qualities who could be found to replace the present Governor.
6.
The apparently obvious solution that he should be replaced by a Military Governor is open to the serious objection that, owing to a recent unavoidable change in appointments, no high quality civilian adviser with a long or intimate knowledge of the Colony would be available (as was the case when Admiral Harcourt was Military Governor).
7.
Furthermore, the appointment of a Military Governor at this stage might seriously prejudice our attempts to carry the Commonwealth and United States with
The us in our stand against Communism in Hong Kong. Foreign Office view is that it would offer more scope for the Chinese Communists to whip up anti-Colonial feeling in Asia against us than would be the case if civil government were preserved.
8.
The alternative was therefore suggested that there might be both a civilian Governor and a Military Governor the latter having overriding powers. This device was successful in Ceylon during the war. Mr Malcolm MacDonald thought that the Governor might loyally accept such an arrangement and make it work.
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