4. There is a further question of tactics which you may wish to
discuss with MacLaren and Samuel. The initiative now rests with the
Chinese to resume the whole discussion on the leases and it seems as
well to give them a good period for reflection before starting to
consider the possibility of reopening discussion through other
channels (your paragraph 16). However, given that Deng's objection
to the offending phrase is in the record for Chinese officialdom to
best see, it might be as well to keep open the option of seeking to point
out to the Chinese that the phrase was inserted as something of a
reassurance to them, rather than decide now that when the subject is
reopened we will indicate our readiness to drop it.
OWEN
Copy by bag to: PEKING
Dus
Page 75Page 76