SECRET

would be necessary in Hong.

2. I am content that you should sound out the Chinese in the way suggested in your TUR during

I leave it to you to your visit to Peking. decide, in consultation with the Ambassador, how much

of the hand to expose at this preliminary stage but

I

I would not be averse to revealing it all.

think that we should aim to make substantial progress if we can by combining yours and my visits at a time of greatly improved relations. decisiveness of the present Chinese Government

The

in many areas at present might make it possible to reach agreement faster than we expect.

3.

Depending on the outcome of your soundings, and subject to your recommendations at the time, I certainly intend to take matters further during

my own visit to Peking. I look forward to discussing the matter with you personally in Hong Kong on my way to Peking. But it would be helpful to have a full report by telegram at the end of the Peking part of your own visit to China. OWEN

FILE S:

STR A. DUFF

HKGD

MR CORTAZZI

FED

MR MURRAY

PS

PS/LORD GORONWY ROBERTS

FS/FUS

LEGAL ADVISERS (MR RUSHFORD)

2

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