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Ideally this approach should be later rather than sooner to minimise the risk of a damaging leak which might occur if we were negotiating too far ahead. It would also involve less danger of forcing the Chinese to revive their claims, when they might otherwise have been content to let matters rest. But at the same time we must take into account that to drift towards 1997 with no apparent policy could provoke the loss of confidence whichcould destroy the Colony. Therefore if we have an indication from the Chinese before 1997 that they would be prepared either to provide for our continued occupation of the Colony beyond 1997 or to negotiate an agreement involving a handover on reasonable terms in 1997, then we should consider very
seriously a favourable response.
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