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2

3. These considerations reinforce the recommendations of

the paper.

I think it would be helpful if an additional

point for the Secretary of State could be inserted after

paragraph 4(ii) of Mr. Moreton's minute on the following

lines:

"Nevertheless both our broader interests in Sino/

British relations and our interest in Hong Kong mean

that we must do what we can to improve our relations

with China in the wider sphere. In Hong Kong we

should avoid doing anything which will make it more

difficult for us to come to terms with China in the

longer run. It is possible that by the 1980s U.S.

relations with China may have changed. It is

unlikely that we shall be able to count on much inter-

national support for our Hong Kong policies at that

time.

Copied to:

Sir A. Galsworthy

Sir J. Johnston

Mr. Moreton

Mr. Carter

(C. H. D. Everett)

Planning Staff

20 March, 1969

Mr. J. Murray

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