SECRET

CALL HY H.E. THE GOVERNOR OF KU NO KONG UN

THR SECRETARY OF STATE

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õusmeted Pointa for making to the Governor

I read with interest your despatch of 13 February from

Hong Kong in which you discussed the implications of last

yaaris confrontation. I have also eaan the Commenwealth

To share your view that the

Secretary's reply of 16 April.

ending of acnfrontation does not in any way mark an abdiostion

from the long term communist goal of undermining administration

and public confidence in the Colony. I would like to repeat

the assurance he gave you in that despatch that there is no

inclination in Whitehall to diemiee the problems of Hong Kong

from our zinda now that the confrontation is over. We shall

continue to follow developments very closely and give you all

our support.

2.

The problem is as always to assess China's immediate

intentions.

On the official level they are unlikely to show

their hand. I know that contacta have begun in Hong Kong

with unofficial representatives, which may offer a useful

channel back to Peking. What do you think of the prospecta

of worthwhile results?

3.

Preparations for the long-term future of Hong Kong

present a harsh and intractable problem. I er aware that

peper on this is in preperetion by officials, and that yon

are having an opportunity to comment on it during your visit.

Xy colleagues and I will wish to give it the most careful

SECRA

/consideration.

Dovo 10.

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