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Bucidchames for bonne fele

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GUID, LINES FOR GOVERNOR. DESIGNATĄ OF

Long Term -lanning

1. My point of departure is HMG's policy towards the

future of the Colony as set out in Mr Wilford's paper of

28/6/71 agreed by Mr Royle and the secretary of State, but

not yet taken to DO1 C. Briefly its conclusion is that while

there would be no point in attempting to negotiate the

future of Hong Kong with the present Chinese Government,

we should do so if a more favourable Government emerged, and

that in any case we would have to do so long before the

expiry of the Lease and in advance of the collapse of

confidence which would precede it by many years.

The implications are: -

(a) Since we must avoid a negotiation with the

present Government of China, we must be careful

not to raise any false expectation by discussing

the status of the Colony with the Chinese either

formally or informally. We must also continue to

avoid actions in Hong Kong that might cause the

CTG to reconsider their current policy, such as:

obstructing their legitimate profits from the

Colony, permitting unnecessary friction or causes

of legitimate concern, or giving the impression of

any move towards representative or independent

government.

(b) We must work out policies in Hong Kong consciously

designed to prolong confidence and so gain all possible time for conditions to emerge in China

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