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[LORRAIN OSMAN:
25
pl. par. with
SEAD sutamission (26 ~23/4
on this letter.
ALLEGATIONS OF CORRUPTION BY FCO OFFICIALS]
1 I discussed and agreed this advice in draft, having attended the con with Treasury Counsel on 12 April.
2 The basic question is whether to institute legal proceedings against Mr Cahill to prevent him from making further use of the Hong Kong telegram or rely on a strong rejection of his allegations, reserving our legal position if he persists.
3 I am sure that the latter is the wiser course of action. Legal proceedings would lead us into deep and uncharted waters (Spy Catcher II), with an uncertain outcome. Mr Cahill may be banking on such a reaction and have framed his offensive letter accordingly. The latter option involves some embarrassment in so far as we fail legally to defend an official document which a Minister (Mr Francis Maude) personally attested should be covered by PPI because its disclosure would be likely to have a potentially damaging effect on the United Kingdom's bilateral relations with Malaysia.
4 The draft reply is designed to frighten Mr Cahill off. But it avoids uttering threats which it might not be possible or expedient to carry out. This was also Treasury
Counsel's advice.
mos min
میں
DH Colvin
22 April 1991
CC
PS/PUS
Sir John Coles
Mr Parker, Legal Advisers
HKD
Security Department
PS/Sir Robin Butler
Mr Guy, SEAD
HKD 3841
NUCA
EIVED "
23 APR 1991
SK OFFICER
REL
PA
Action Taker.
DB2AEF
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