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problem as seen from both sides before seeking to reconcile them. It was our intention that the briefs for the then Secretary of State's intended visit to Hong Kong would point up any remaining differences so that he could discuss them with the Governor then

and decide what policies he wished to pursue thereafter.

ii) This plan went somewhat awry because the Governor does not seem to have understood that there was a requirement for the second despatch, that on internal policies. It was only after he had been reminded of this that one was produced (dated 3 March). By the time we discovered this the Planning Paper had been through several drafts and while we took as much account as possible of

this despatch, there were bound to remain some differences of

view. Again it was our intention to seek to reconcile these as much as possible in the run-up to the Secretary of State's visit. Obviously there would have been more time for this had we received the Governor's despatch earlier.

iii) However, the cancellation of the Secretary of State's visit to Hong Kong produced more time to carry out the original intention and we are glad to think the Paper is now, in substance, agreed. Inevitably, with an audience of Ministers in mind, the Paper may still not be entirely acceptable in tone to the Governor; but both sides have had to compromise in the interests of an agreed programme for action.

16 July 1976

cc:

Mr Larmour

Minth

PL O'Keeffe

Hong Kong Department

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