SECRET

2

Hong Kong questions including social security, trade union matters and aspects of representative government are bound to be discussed. Depending on circumstances at the time, the Secretary of State might wish to make some reference to the 1997 problem and the need to deal with it if confidence in

Hong Kong is to be maintained. We should clear our minds about the possibilities well beforehand.

3. In the light of these considerations I propose to ask the Department to produce a first draft of the paper by the end of this month. It would then be sent to the Governor of

Hong Kong and HM Ambassador in Peking for their comments. Once these have been incorporated the PUS might think it appropriate for the paper to be discussed by his Planning Committee; and the Secretary of State might wish to send the final version to the Prime Minister.

9 November 1978

HA H Cortazzi

c.c.

Private Secretary

Sir A Duff

Mr Murray

Mr Crowe (Planning Staff)

Mr Samuel (FED)

Mr McLaren (HKGD)

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# Кома

SECRET

Gore

4/11

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