CONFIDIACIJAD
the Hong Kong Government would be able to achieve a working relationship with the Chinese sufficiently firmly based to allow them to discuss the problem. But the time was still premature. If a specific issue occurred which required action by the Hong Kong Government, and which they felt it necessary to discuss with the Chinese, discussion could take place locally or in Peking. The Governor is thus against raising the issue with the Chinese Government and feels that action which is feasible within the Walled City will be palatable to the inhabitants and will therefore obviate the need for consultation with the
Chinese. I also attach a copy of Peking telegram number 351 which sets out H1 Ambassador's views. Flag G is a cutting from the llong Kong: newspaper China Mail of 16 May which gives useful background information on the Walled City and on the improvement of conditiong
there.
At
4. In the light of the above I submit Draft Speaking Notes, Notes for Supplementaries, and a Background Note.
5. Hong Kong and Indian Ocean Department concur.
So does Mr Evans.
FLAG
Flag
7 June 1974
Finf.fuch.
D M March
Far Eastern Department
CONFIDENTIAL
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