CONFIDENTIAL

HEK 184/1

RECEIVED BY REGISTRY NO. 51

Foreign and Commonwealth Office

London SW1

TH Stables Esq CAIR 1A

Department of Trade

1 Victoria Street London, SW1H OET

1 NOV 1978

OFFICER

Telephone ANDX335539

NO

Your reference

Our reference

REGITRY

Action Tuwen

Date 21 November 1978

اكما

3

563

Deer Deas Tom.

مردم

I have no

objecticus

han

but the draft

been Weltalien

Rela

Telmo. But раст

1. Further to my conversations with yourself and in your absence, Mr Bryant, I attach a draft telegram of instruct- ions to Peking.

2. Although I believe that the statements which we are prepared to make are likely to lead to a Chinese rebuff and hence to a further stalling of the negotiations, I agree that in view of the balance of commercial risk, it is right at this stage to go no further in what we are prepared to say.

3. I am content with the wording suggested in Peking telegram under reference. On balance, I think that the wording used there to describe the status of CAL meets our need and avoids the small element of risk involved in the formula in our Telno 599 to Peking. But in the light of Hong Kong comments (their Teino 1284) I am not firmly wedded to this view.

•35

You sincerel Roger

R E Allen

Far Eastern Department

Cc: Mr Thompson, HK & GD

Mr Northover, MAED

Mr Darwin, Legal Advisers

CONFIDENTIAL

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