CONFIDENTIAL

to a dfteate”.

Certainly such sa dat would please the Chinese

A

but it has two snagsi it would probably do nothing for other

British subjecte (... difficulty to which I shall return below);

and it is hardly likely to lay down a healthy basis for future

co-existence (we can hardly describe it as more) between lieng

Kong and the mainland.

As for the "debris of confront:tion"

there are now only six detainees remaining out of fifty-four,

but some 300 convicted prisoners; and we cannot realistic-11y

press the Governor for the premature release of large numbere

of these at the tire when the Chinese are pressing us in public

to do 30.

(111) Mr. Cradock's (e): "Any settlement means concessions."

This we are aware of, and some progress was certainly m de in

ade

restoring norusl conditions for diplomatic stuffs in Feking

end Tondon by c-refully judged concessions on our part.

But the Chinese have not in effect been matching concessions made

in Hong Kong. #hile there is something of a tacit understanding

is operation that the Chinese will restrain their followers in

Hong Kong from acts of violence while we on our rt will void

acts that could be construed by the Chinese as provocation, it

remsins true nevertheless that such cts as the Governor's

relatively rapii release of confrontation let inees have not

been matched specifically, as might have been hoped, by, e.8.

the release of letuined British subjects in Chips. it is wise

at is stage, therefore, to remain autious. We should perhapa

7

VOAZIATI-L

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