Government regard it as very much in their interest

that it should be granted.

civil aviation grounds.

10.

But this is opposed here on

There are other points of potential friction. The

negotiations for a Mass Transit Scheme in Hong Kong are

not going well for the British consortium. Strong bids

from the Japanese and others are in the field.

11. All these difficulties are arising at about the

same time. Some of them are inescapable. For example

it was inevitable that UK concerns should override

Hong Kong interests in the recent case of the reprieved

murderer. The same may turn out to be the case of the

death penalty as a whole. But in other questions, in

particular nationality law and air traffic rights, I

believe that Hong Kong's interest could be enough to

sway our own decision. The question of Hong Kong's

partial exclusion from the Community's GSP also needs

further examination. We shall shortly be meeting to

discuss the first of these more delicately balanced

issues.

12. Where I seek your support and what I ark of my

colleagues is that in all matters of these kido

relating to Hong Kong, the Department directly concerned

should remember that JIMG as a whole, have a responsibilthy

For whole

towards the Colony and that we must day to ach

agreement on a courae vhich, fcross the whole

Ich ferons the whole vi

our work, specks to balance the United Kingdom rel kie

Hong Kong interest],

CONFIDENTIAL

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