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HICK Oval

1:

2 9 MAR 1979

No 827.4

New Territories Leases

Dr Owen has seen Hong Kong telno 374 of 15 March, in which the Governor stresses the difficulties of making swift progress over the leases with the Chinese.

Dr Owen agrees with paragraph 7 of the Governor's telegram ("We will do our best to push things along, but we must on no account risk a setback through over-preoccupation with a quick coup."). He also noted the Governor's view that what we are proposing may fall far short of what many people in Hong Kong would have liked, and has commented that he is himself still worried about the Hong Kong reaction to our proposals.

You may wish to incorporate the Secretary of State's views in any reply to the Governor.

cc:

23 March 1979

Mr Cortazzi

Mr Murray

Mr Samuel (FED)

Mr-McLaren (HKGD)

If. M. Ulala

(G G H Walden)

45A

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