5.

In the longer term, the proposals, if implemented, might actually be useful to us. As I expect you know, there exists a Top Secret Cabinet Paper on the future of Hong Kong, which I cannot quote from here. But if we did ever wish to try to negotiate an extension of the New Territories Lease beyond 1997, a perpetual lease of Gibraltar from Spain could provide a useful precedent.

6.

I think we should tell the Governor of Hong Kong at an early stage of the proposals about Gibraltar. He will be in the Office fleetingly on Thursday, 9 August, and I might perhaps have an opportunity to consult him then.

7 August 1973

CC:

Mr Goodison SED

Mr Clark FED

Mr Donohoe G & GD

SECRET

R B Crowson

Hong Kong & Indian Ocean Department

A

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