CONFIDENTIAL

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Pris

reach agreement before the Prime Minister's visit to Hong Kong,

then fixed for early January. The Secretary of State considered,

however, that the Home Secretary and the Law Officers would win.

No meeting therefore took place.

Recommendation

3.

Moreover

The postponement of the Prime Minister's visit gives us

rather more time to resolve the question. But we should still do

so well before he goes to Hong Kong, so that any row has time to

blow over. There have been no changes in the UK which make it any

more likely that we shall get agreement to change the law.

The

Secretary of State's conclusion is therefore still valid.

the general climate of our relations with Hong Kong is now less

favourable. I therefore conclude that we must now accept that no

changes can be made at the present time to the double-criminality

rule in the Fugitive Offenders Act. I recommend that we should

inform the Governor and other Whitehall departments accordingly.

4.

The Governor already knows of our decision that we cannot

make a retrospective change to return Mr Godber. But he has told

no-one in Hong Kong of this. In the hope that our refusal could be

overlaid by agreement to make a non-retrospective change, he asked

that both decisions should be announced together. Our final decision

on both points will not be easy for him to put across in Hong Kong.

5.

The Governor discussed this question both with Mr Royle

and with the Secretary of State. I think he should have a personal

letter of explanation from Mr Blaker. The Secretary of State may

also wish to consider the decision before the letter's despatch.

CONFIDENTIAL

/I submit

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