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future issues. She foresaw 3 stages: first the settlement of

the unilateral guarantee, second a visit to discuss the future

and demonstrate that we were working closely with Hong Kong,

and third (and separately) negotiations on future arrangements.

9. Sir Murray MacLehose replied that the cosmetic benefits

of a visit would not be substantial. Treasury officials would

be welcome to come but their visit would only be useful if they

came with a specific objective. The difficulty was that the

press and public in Hong Kong would get to know of such a visit

and would ask what topics had been discussed and what results

achieved. He suggested the idea should be discussed with

Mr Haddon-Cave.

10.

Sir Murray MacLehose then left with Mrs Hedley-Miller to

call on Mr Mitchell.

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