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scale suggested by Sir Y. K. Pao. But she would ask for further details of progress in the negotiations and of the proposed financing.
The Prime Minister said that the situation in Hong Kong appeared to be satisfactory. She had spoken the previous evening to Sir S. Y. Chung who seemed pleased with developments. Sir Y. K. Pao said that he wanted to float a personal suggestion with the Prime Minister, namely that we should shortly appoint a Hong Kong Chinese as Deputy Governor of Hong Kong. The Prime Minister said that this would be a very delicate matter in which it would be necessary to move extremely cautiously and in close consultation with the Chinese Governer. She would think about it.
ment.
A. C. Galsworthy, Esq., C.M.G., Foreign and Commonwealth Office.
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Charles Powell
CONFIDENTIAL
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