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FM HONG KONG 151000Z MAY

TO IMMEDIATE F.C.0.

TELEGRAM NUMBER 580 OF 15 MAY, 1979

INFO IMMEDIATE PEKING.

NEW TERRITORIES LEASES:

Шкколо RECEIVED it.

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Y NO. 51

16 MAY 1979

रनिके

tion T

1. I AGREE WITH THE REVISED SPEAKING NOTE IN PEKING TELNO 443. 2. I AM GLAD THE AMBASSADOR PREFERS COURSE A OF MY TELNO 519 (PARAGRAPHS 4 AND 5 OF PEKING TELNO 445). BUT IN THIS CASE I THINK IT WOULD BE PRUDENT TO EXPLAIN THE WHOLE PACKAGE TO THE CHINESE, ALBEIT IN THE GENERAL TERMS THE AMBASSADOR SUGGESTS, AND TO DO SO ALL AT ONE TIME,

3. 1 PRESUME MINISTERS WOULD NOT CONSIDER AN ORDER-IN-COUNCIL UNLESS THE CHINESE HAD BEEN TOLD THAT U.K. ENABLING LEGISLATION OVER INDETERMINATE LEASES AND THE GOVERNOR'S POWERS WOULD BE ENACTED, AND HAD NOT OBJECTED. SO IF WE NOW OMIT REFERENCE TO EITHER OF THESE ELEMENTS IN THE PROPOSED APPROACH WE WOULD

ONLY HAVE TO MAKE A SUPPLEMENTARY EXPLANATION LATER AND CONSEQUENTLY

RISK SUSPICION THAT WE WERE EDGING THEM TOWARDS SOME STILL UNDISCLOSED OBJECTIVE.

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4. SO I SUGGEST THAT IF NECESSARY ACTION IN PEKING BE POSTPONED UNTIL MINISTERIAL APPROVAL FOR THE FULL SPEAKING NOTE IN TELNO 443

HAS BEEN OBTAINED. NATURALLY I HOPE THAT IN SPITE OF OTHER PRESSURES THIS WILL NOT BE DELAYED TOO LONG, OR THE CHINESE MAY COMPLETE THEIR EXAMINATION (PROMPTED BY THE AMBASSADOR'S TALK WITH SOONG) IN IGNORANCE OF THE FULL IMPLICATIONS OF OUR PROPOSAL. 5. IT IS THE THIRD LAST SENTENCE OF PEKING TELNO 443 THAT NEEDS SAYING QUICKLY TO THE CHINESE. IT IS MOST UNLIKELY THEY REALISE HOW IMPORTANT THIS WILL BECOME VERY SOON, AND HOW MUCH IT IS IN OUR MUTUAL INTEREST TO DISPOSE OF IT BEFORE THE ISSUE BECOMES THE SUBJECT OF MORE PUBLIC DEBATE AS FIRMS ATTEMPT TO PRESSURE

US TO ACT.

6. PEKING TELNO 445 PARA 6. WE WILL TELEGRAPH FURTHER ABOUT THE WORDING OF CLAUSE 3.

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