ford

Mr Wilford

21/2/1

1.

SECRET

DISCUSSIONS WITH THE GOVERNOR OF HONG KONG

I attach the draft of a possible DOP paper which might

be discussed with the Governor on 11 September. An important

topic which is missing from the draft is nationality and

immigration. This is the right context for discussion of

this question, but the classification problem makes it

difficult to do so, and we are anyway unsure how the

ministerial and official discussions over the next few days

are going to go. It might be necessary to brief the Secretary

of State to raise the question orally.

2.

The references to sterling in the draft will need to be

tightened up when we know what is in the Chancellor's message

and how Hong Kong react to it.

3.

Finally it is, as you have forecast, difficult to be

precise enough for a submission to DOPC on the intangible

question of relations with Hong Kong. Our general theme must

be that our freedom to compel them to put our interests first,

is in practice limited, and that too many points of friction

make good government difficult. We can try to get Ministers

to agree that, although their separate departments deal

separately with disputes with Hong Kong, they should pay heed

to the total effect on our interests. Where our vital

national concerns are involved, conflict may be inevitable,

but where they are not we should at least consider it possible

/that we

SECRET

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