FOREIGN OFFICE, S.W.1.

23rd May, 1949.

5

SECRET.

Dear Parkin,

(4)

Thank you for your letter of 21st May, which reached me to-day.

The problem which you pose is of course largely one which concerns the Colonial Office and the Ministry of Defence. It seems to me that it can only be solved by a decision at the highest level, and that this decision will not be easy to reach.

I do not think it can be too easily assumed that the moment has already arrived when the military view should prevail in all circumstances. The diffi- culty, as the Governor of Hong Kong has pointed out, is to strike a balance between military necessity and the necessity to keep Hong Kong alive as a trading centre. The Chinese do not like Hong Kong because its government is British, but because it is a safe place from which to trade profitably. If it remains

a safe place, but trade can no longer be profitably conducted from there because of military security measures, then the Chinese interest in the preservation of Hong Kong will diminish and possibly even disappear. It would to my mind be dangerous to ignore the attitude of the Chinese, at any rate until a state of siege seems inevitable. Apart from the Chinese, it seems to me that we must be careful not to deprive those nations whose support we are seeking in the defence of Hong Kong of the trading facilities they at present enjoy there. There is also the point that military security measures which attract attention will dispose our critics to say, either that we are being provocative, or unnecessarily afraid.

J.J. Paskin Esq., CMG., MC.,

Colonial Office.

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