SECRET

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8. The Governor has therefore proposed that if the Chinese reply

i not received by mid-September, he should let it be known to the

local NCNA representative that, for purely practical reasons, he

has dropped the proposal to announce the new measures in October.

Such an indirect reminder may stimulate the Chinese into replying;

if not, the Governor proposes that it should be followed up by low

key reminders of the advantages of the course that we were proposing

to follow. We shall also need to consider what, if anything, should

be said on this subject to the Chinese Premier, Hua Guofeng, when he

visits Britain next month.

Hong Kong and General Department

September 1979

SECRET

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