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(e) We would not hamper Chinese attempts to win over

the population by peaceful persuasion provided they

are kept within such bounds as would enable us to

overlook them.

(f) We would welcome confidential advance information

on when they themselves think a take-over would be appropriate and the method by which it might be effected; we would try to fall in with them on the clear understanding that we could not accest

(i) humiliation, (ii) disorder, or (iii) denial of opportunity to protect those to whom we had a duty. (g) Both sides would have to accept that overt attitudes

towards each other might have to be apparently

somewhat hard and would recognise that this was

contrived.

(h) The one thing we would not accept is a situation in

which the Hong Kong Government would become a

Chinese puppet under duress.

73. This course would have many dangers. It might morely encourage the Chinese to pursue, without deviation, their aim to reduce Hong Kong to subservience. It would have to be pursued with the utmost secrecy and care over a long

period. And we could not be sure that the link in the channel of communication in these difficult and tricky

circumstances would adequately serve its purpose. But it does minimise some of the dangers of a formal approach (as noted in paragraph 66 above) and particularly it provides us with the means of drawing back if we should be rebuffed. It enables 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.

740 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.

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Prospects for

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