surely have little to gain and much to lose

S

(in terms of the internal politice struggle) if

they do so.

3.

~

Our view is that we should respond cautiously Towards to any apparent feelers in an endeavour to reach

feeler understandings on matters in which the CPG shows

special interest. In doing so we must avoid a

situation in which we will have tied our hands in

an area where we could exert pressure, e.g., the

Communist press, while leaving CPG free to exploit

other aspects of confrontation. But since any

understandings we may reach are likely to be of a

very loose and informal nature this danger may

perhaps be discounted

4. If general talks with the Chinese on Hong

Kong are seen to be a possibility we agree that

there are arguments for holding them elsewhere

than in Hong Kong or Peking. But we do not

think that contacts on specific points could be

usefully pursued except in Hong Kong or Peking,

since it is usually necessary for such

"negotiations" to cover in some depth practical

details of the problem under discussion.

5. We agree with Hopson that the Chinese, if they

wish to disengage, will find it necessary to

demonstrate some kind of "victory". At some

stage it may be useful to help them find a face

saving formula but we tink that this stage has

not yet come. When it does, the Chinese will

probably

but we shoned

want.

• bibe pretty

Sure that it would to achieve,

the desired result for In

any

care

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