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(IV) THE GOVERNOR WILL OF COURSE HAVE AN OPPORTUNITY FOR DISCUSSIONS WITH HIS HOST, LI QIANG, AND POSSIBLY WITH OTHER CHINESE LDERS. HE WILL BE ABLE TO EXCHANGE VIEWS ON MATTERS OF COMMON INTEREST SUCH AS IMPROVED COMMUNICATIONS LINKS WITH CHINA (RAIL, SEA, AIR AND TELECOMMUNICATIONS), WATER SUPPLIES, TOURISM, AND IMMIGRATION PROBLEMS. BUT THE VISIT SHOULD NOT BE SEEN AS ONE FOR HOLDING
NEGOTIATIONS.
3. IN ANSWER TO THE INEVITABLE PRESS QUERIES ABOUT WHETHER THE GOVERNOR IS GOING TO TALK ABOUT THE LEASE, WE WILL REPEAT THAT THE VISIT IS NOT ONE FOR NEGOTIATIONS. IT FOLLOWS A SERIES OF MOVES BY THE CHINESE WHICH SHOW THAT THEY ARE CONTENT WITH THE STATUS QUO IN HONG KONG, THE VISIT WILL HELP TO BUILD UP A RELATIONSHIP OF MUTUAL CONFIDENCE: BUT THIS IS NOT THE TIME OR THE OCCASION FOR DEALING WITH MATTERS OF THE LONGER
TERM FUTURE.
4. THE TIMING OF THE ANNOUNCEMENT POSES AN AWKWARD PROBLEM. THE NCNA HAVE PROMISED A REPLY ON DATES AT THE END OF THIS WEEK. I TOLD EXCO ABOUT PLANS FOR THE VISIT THIS TUESDAY. AS MORE PEOPLE KNOW ABOUT IT THE CHANCES OF A LEAK INCREASE. I WOULD ALSO LIKE TO ANNOUNCE THE VISIT SOON TO PREVENT ANY MISCONCEIVED SPECULATION THAT IT WAS ARRANGED IN A HURRY. THIS ARGUES FOR AN
ANNOUNCEMENT AS SOON AS POSSIBLE.
5. UNLESS THERE IS SOME SERIOUS NEW DEVELOPMENT I HOPE YOU WILL NOT WISH ME TO POSTPONE THE VISIT BECAUSE OF VIETNAM, PARTICULARLY WITH ARRANGEMENTS SO FAR ADVANCED AND WITH MR VARLEY'S VISIT GOING AHEAD AS PLANNED, IF THE CHINESE REPLY BEFORE THE WEEKEND, AND UNLESS YOU INSTRUCT ME TO THE CONTRARY, MY INCLINATION IS TO GO FOR AN ANNOUNCEMENT ON MONDAY NEXT WEEK, ON WEDNESDAY THE FINANCIAL SECRETARY IS PRESENTING HIS BUDGET. I WOULD NOT WISH SERIOUS COMMENT ON HIS PROPOSALS TO BE PRE-EMPTED BY PRESS INTEREST IN MY VISIT. THAT MEANS THAT THE ALTERNATIVE TIME FOR AN ANNOUNCEMENT WOULD NOT BE BEFORE FRIDAY OR SATURDAY NEXT WEEK, BUT THE PRINCE OF WALES IS DUE TO ARRIVE THEN.
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/6. I WOULD