Minutes of the Forty-fifth Meeting of the Committee, Held in Conference Room "H", at the Ministry of Defence, S.W.I, on Thursday, L+th May, 1950, at 10.30 a.m.

3. STRATEGIC IMPLICATIONS OF A BREAK SECRET WITH THE CHINESE GOVERNMENT. THE COMMITTEE referred to a minute+ by the Secretary covering a draft terms of reference for a report on the strategic implications of a total break in our relations with China, of which the approval of the Committee had recently been notified to the Secretary. MR. REILLY said that the terms of reference had been circulated in order that a report could be started examining certain implications of a total break in our relations with China which might result from a decision to exclude Chinese Consuls from Malaya. The Foreign Office had now officially asked≠ the Chiefs of Staff for their views on this subject in order that these views could be available when the Cabinet again considered the question of the Chinese Consuls. The Foreign Office letter had been referred to the Joint Planning Staff for examination and report. There were two main questions on which the Foreign Office required advice, namely, on the implications of a complete cessation of all overt sources of intelligence in China which would follow from a break with the Chinese Government, and also on whether such a break would increase the threat to Hong Kong. It would now appear, therefore, that the original terms of reference were too wide and it might be preferable only to provide the Joint Planning Staff with the answers to the specific questions on intelligence which they would require in preparing a draft reply to the Foreign Office. He pointed out that the political and economic implications of a break with the Chinese Government were to be considered by the Far East (Official) Committee. He regretted any inconvenience caused by the circulation of the draft terms of reference and proposed that they should be withdrawn. THIS IS A COPY. THE ORIGINAL IS RETATNED UNDER SECTION 3 (4) OF THE PUBLIC RECORDS ACT REAR-ADMIRAL LONGLEY-COOK said that it was most important to balance the serious consequences on our position in Malaya if Communist Consuls were appointed there against the loss of intelligence on China. THE JOINT INTELLIGENCE STAFF said that the Joint Planning Staff had already approached them for specific assistance in the preparation of a draft reply to the Foreign Office, and they would bear in mind the points made in discussion. THE COMMITTEE:- Instructed the Joint Intelligence Staff to provide the Joint Planning Staff with the necessary assistance in the preparation of a draft reply to the Foreign Office letter on the exclusion of Chinese Consuls from Malaya. + J.I.C./737/50. ≠ C.O.S. (50) 149. -2-