TNAG-0374-FCO40-420-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1973 — Page 166

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6. Perhaps some such clarification of Mr Royle's suggestion, together with some further elucidation of the Governor's own thinking, might be made at Ministerial level in September; after the Governor has taken further thought and spoken to Mr Haddon-Cave, matters could be taken further when Mr Royle is in Hong Kong in October. In the event, however, that September proves to be very difficult for Sterling Agreement reasons, then it might be better to postpone further discussion on Mr Royle's suggestion until he sees the Governor again in October.

7. This suggested procedure implies that I have come round to the view that the idea that the Governor should have discussions with a group of financial officials in September may be premature. For reasons given earlier in this minute, it is more than possible that the atmosphere then will not be conducive to useful discussion inhny depth on longer-term issues. Besides, whilst suspicions of our motives still linger, the Governor would be almost bound, in discussions with officials, to maintain the line in his telegram that "present problems do not stem from lack of expertise or mishandling here". He would have to take a firm line against anything which might be interpreted as criticism of his officials by officials here; and he would surely have to say that Mr Haddon- Cave ought to be present. I can easily foresee that such a discussion could go off at half-cock, and make any progress there- after more rather than less difficult.

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D G Holland

c.c.

Sir D Watson

Mr Marshall (o.r.) Mr Stuart

Mr Cambridge Miss Pestell

Mr Franklin

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