11.
It is necessary to consider whether abandonment of the action would involve any loss of public confidence in the ability of the Hong Kong Government to maintain its authority. Since the action is a private one in which the Government is not directly involved it appears unlikely that the general public would regard it as a trial of strength with the Government. Significantly the Governor does not mention this aspect in his comments and was prepared in earlier exchanges concerning a similar case to contemplate asking the plaintiff to waive his claim to damages (H.K. tel. No. 1820).
12. Whatever course of action is decided upon in this case will not necessarily affect the course to be followed by the plaintiffs in the other two private libel actions. However, it may be assumed that the Governor will endeavour to persuade the plaintiffs in those cases to adopt whatever courses of action may at the time seem most appropriate in the public interest.
Conclusions
13. No advantage is seen in prolonging legal action against the Communist press which we would not wish to pursue to a conclusion in present improving conditions and which would be of doubtful value as a deterrent. The abandonment of this private action is unlikely to affect public confidence or the authority of the Hong Kong Government. It could lead to a further improvement in the Hong Kong situation by assisting communist attempts to "dismount" from confrontation.
14. The Foreign Office concur in this submission.
b. 5. Carter
(W.S. Carter)
Hong Kong Department
10 January, 1968
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