CO537-4998 — Page 5

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Mr. Paskin

You should see C.P. (49)100, which is to be taken at tomorrow morning's Cabinet meeting, and also Mr. Trafford Smith's minute thereon.

From the political angle Lord Listowel could; I think, say that we support the views expressed in the Paper, in particular the considerations set out in paragraphs, 2-4 inclusive of annex II. As regards paragraph 10 of annex II, it might be desirable to comment that this defence line lies a considerable distance inside the boundaries of the Colony; that we assume that it has been selected as being the shortest and most easily defensible position; but that failure to make a strong bid to deny the whole of the New Territories to Chinese Communist forces might well have a serious effect on morale in Hong Kong if such a decision became known in advance of actual operations. (When I made this point at the meeting at which the Chiefs-of-Staff considered the report, now made to the Cabinet, I gathered that a further appreciation may be sought on the actual defence line, but I feel that it is worth while to bring this point to the notice of the Cabinet now.). I have no further comments.

I agree that Lord Listowel should have, for information, a statement of forces now available in Hong Kong and the re- inforcements which it has already been decided, or it is proposed, to send there.

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