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5.
We had very constructive talks with Percy about the leases issue, and he is now checking drafts of papers prepared during his visit.
Once I have his
clearance I will send you a revised draft Order-in-Council and also a paper on possible Chinese counter-requests and the responses we suggest.
6.
The lease question is so important and so detailed, that I hope it can be kept out of the genera 1 paper except of course that it must be noted as the dominant and immediate problem which is being dealt with separately and will be the subject of a separate submission.
7. draft:-
With regard to the details of your skeleton
Section IV
(i)
(ii)
(iii)
8.
I do not think a major objective of economic co-operation is to make eventual reabsorption easier (point (b));
the key issue is precisely how the Chinese will try to maximise their economic advantages from Hong Kong (point (a)) - this will need to be spelt out in detail (our paper on possible Chinese counter-requests might help here); and
I am not sure that obtaining a Chinese representative within the next decade (point (g)) should be singled out as a major objective. While I think such representation is likely to emerge at some point (indeed it has progressed a long way in the last six years), and at some point the Chinese may press it, it is an open question at present (and very relevant to the leases question) whether it will be a sticking point.
Section III
I do suggest you stick to administrative fact and avoid generalities. The latter are full of pitfalls and can mean such very different things to different people and
At are hopeless as a basis for administrative planning. FCO request we prepared a factual summary of our planned progress up to 1984/85. Our plans are very ambitious but I think, given reasonable demand in the world, and prudent
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