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Foreign and Commonwealth Office

London S.W.1

22 November 1974

Sir Douglas Henley KCB H M Treasury

LAST REF.

(206)

Dear Dung los,

HONG KONG

. .

ด.

fidd

2574

Bin Lilly Bd 25141

Des

22/11

8525/11

Thank you for your letter of 21 November. I have also seen

DEFENCE REVIEW:

John Hunt's letter of 21 November, which has just reached me.

1.

2.

We are consulting the Foreign and Commonwealth Secretary

about the line he would wish to take in Cabinet on 25 November.

Meanwhile I agree that even if, on 25 November, Cabinet

should approve the inclusion in the Statement of wording on

Hong Kong closer to our preferred language than what at present

stands in the draft, there could in answer to any supplementaries"

be a reference to somewhat smaller forces and a somewhat

larger contribution by Hong Kong. As I said in my letter to

John Hunt of 19 November, this would cause fewer problems in

Hong Kong than a similar passage in the statement itself.

I would not see any need to volunteer these points unless

they were specifically raised.

But

3. You suggest, as a condition of Treasury agreement, that

formal consultations with Hong Kong should be brought forward

to start as soon as possible. It may well be that, if the

form of the statement is such as to stir up public comment

and opposition in Hong Kong, we shall find ourselves unable

to delay the opening of negotiations. But none of us here is

in a position to say with confidence whether this will improve

/the chances

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