CO537-3707 — Page 34

Mr. Sidebotham.

A draft telegram as approved by

Mr. Rees-Williams and the Secretary of State in their minutes of 30/7 has been sent for

concurrence to the Foreign Office and the Ministry of Defence. A copy of it is at (276).

The draft contains the basic decision

that in view of the Law Officers opinion H.M. G. are not going to take the case to the International Court and will do their best to avoid getting into a position where the Chinese might take it to Court, and that therefore some form of compromise should be sought. The only important respect in which this draft differs from our earlier draft

(behind 267) is that it does not go on to discuss a possible form of compromise. basic decision is contained in it - and it is this basic decision about which the Ministry of

Since the

Defence are (I imagine) mainly concerned we cannot expect a snap answer from them. I have asked therefore that the present draft may be considered instead of the earlier (and longer) draft at Friday's Chiefs of Staff meeting (6th August).

Mr. Rees-Williams has suggested a

discussion and the Secretary of State has agreed. I do not think it would be profitable to bother Ministers with this until we have the Ministry of Defence reaction to the draft telegram and (assuming they concur in its issue) until we have the Governor of Hong Kong's reply. When we have that we must then discuss the form of compromise which should be pursued.

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