4
The Church House,
Great Smith Street,
London, S.W.1.
21st May, 1949.
SECRET
(2)
Dear Price,
My Secretary of State is anxious to send es early as possible a reply to the Governor of Hong Kong to the two questions raised in paragraphs 10 and 11 of S.A.C.(49)5. (Revise), which were not fully considered at the meeting of the Committee last Tuesday, When
he mentioned these matters to me, he indicated that he had it in mind to submit a paper to the Cabinet on them. I have unfortunately not had an opportunity to discuss it further with him, but I understand the view of the Cabinet Secretariat to be that these two issues should be settled inter-departmentally if possible.
There was some discussion on the point raised in para. 10 at the meeting of the China and South East Asia Committee on Thursday, and in the light of that discussion, I have prepared for consideration the following possible text of a reply which could be sent to the Governor on this issue :-
"H.M.G. fully appreciate the dilemma presented. On the one hand they recognise the very great importance of not taking unncessarily soon any defensive measures which would prejudice the position of Hong Kong as en imperial trading base, which is the primary justific- ation for the retention of Hong Kong as a British Colony. On the other hand if the execution of certain of these measures is unduly delayed there is a serious risk that either internal security, or the
/ defence
Brig. C.R. Price, C.B.E., R.E.
Page 130Page 131