020/393/1
Dr D C Wilson
Political Adviser
HONG KONG
SECRET
8 August 1978
HKCK owo/l
RECEIVED IN EKSTRY MO
INDEX
OFFICER
PA
No lat а
Ken
1.
Thank you for your letter of 6 July about the Lease. I have seen a copy of the Governor's letter to Robin McLaren on the subject.
2. As you will, I trust, have seen from my telegrams 469, 470 and 471 and my first impressions despatch, my view is that, although all things political are uncertain, the present Chinese leadership and present policies seem reasonably well set and are likely to resemble closely the leaders and policies we shall have to reckon with in the Eighties, when in any case the problems of Hong Kong will have to be broached. My views are therefore rather more sanguine than those of the Governor as recorded in paragraph 2 of his letter to Robin McLaren. The conditions laid down in paragraph 19 of the Planning Paper have, in my view, been met.
3.
However, while your and my perception of the situation in China may be slightly different, I think we are at one in our view of what action should be recommended in the immediate future. I have never been much in favour of a frontal, comprehensive approach to the Chinese on the future of the Colony. I believe that once we have become clear in our own minds of exactly what we want, we should make a step by step approach to the Chinese using concrete issues as the reason for the approach.
4.
The incipient problem over leases seems to me to be an ideal one to put to the Chinese together with a proposed solution. Despite all the intricacies of British law, the Chinese are likely to understand the basic issues very quickly. I would therefore fully support an examination of the various ways of dealing with the problem.
сс R J T McLaren Esq, HKGD, FCO
R C Samuel Esq FED, FCO
SECRET
PERCY CRADOCK