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e in power.

Although Mao Tse-tung and Chou En-

Lai will be dead before 1997, Chinese Governments

are disposed in practice to follow agreements made

by their predecessors, witness their present

1

acceptance of the New Territories leasessments

staff are inclined to think that we should take this present chance rather

5. But we cannot yet be sure whether the

objective of an agreement or understanding for us

to stay beyond 1997 may not be attainable in the

future. Moreover, any discussions with the Chinese

would be likely to become public knowledge, and

San

an agreement for an orderly withdrawal would be

damased worse than valueless if it did not promete present

There is a risk of this public confidence in Hong Kong. It could become

•Something be in whosed unere com Beccariful. Th

Jedwabie

which would

nervousness about a possible

has become

disorderly or earlier takeover was more real than

the fear of the deadline. But

this is not yet the

case.

Although therefore there are risks in

inaction, the balance of advantage is still to wait.

6.

These considerations do, however, underline

the importance of timing and the continuing need

for an annual review. I submit a draft DOPC paper

accordingly. Far Eastern Department and Planning

Staff agree, and the paper's conclusions have been

agreed with the Assessments Staff.

7. The Secretary of State commented on the

previous paper that we should be particularly

careful about its security. We will arrange

specially limited distribution for the new one,

and I would be grateful if copies of this draft,

other than the original, could be destroyed after

+

reading.

than submit to the uncertain Suture

Qre replace (which mist hoppt before very

long). Their

successors, moreover,

woned be more likel.

vecke

agues

Create Then the Oral

under Oki on which we now rel.

+ a ac

NOTHING TO BE WRITTEN IN THIS MARGIN

oùed feir

agremeni

se for reponiction only becondo reoly vivots

when

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