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the Chinese to talk to us about Hong Kong without loss of

face and, if they respond reasonably, we should be able to

avoid a humiliating withdrawal.

74. The precise manner in which the approach might be made

and the channel to be used would, of course, require the

most careful detailed examination. But if, through a

reliable intermediary, we could by these indirect means,

(as opposed to direct negotiations) clarify our position

to the Chinese, there is some hope that, having considered

it carefully, they might come up with a sensible response in

the end and that some entirely covert understanding might be

reached.

Prospects for a Negotiated Solution or Understanding with the Chinese

75. The prospects that the Chinese would respond with any

reasonable degree of co-operation to an initiative on our

part to reach some agreement or understanding on withdrawal

must depend very much on:-

(a) Whether it suited their policy at that time to take

the Colony over and, if it did, what their "interest"

was in getting it back. If we chose a time that did

not suit either their economic or political

A

objectives, we could expect them to maximise their

demands upon us and to seek to ensure that we left

in utter confusion and in the most humiliating

conditions. If our withdrawal did suit their policy,

their reaction might vary from an uncompromising

statement of their terms if they wanted to extract

a propaganda and prestige advantage to a reasonable

negotiating posture if they were genuinely anxious,

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