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SIDE AND WAS WITHOUT PREJUDICE TO THE CHINESE POSITION ON HONG KONG OR TO ANY ACTION THEY MIGHT TAKE CONSEQUENT TO THIS POS
SUCH LEGISLATION WOULD HOWEVER RELIEVE US FROM THE PRESSURE WE ARE COMING UNDER AS A RESULT OF THE LEGAL OBLIGATIONS OF AUDITORS
AND ACCOUNTANTS CONCERNED AT THE LEGAL IMPLICATIONS FOR INVESTMENT OF THE STEADILY SHORTENING PERIOD OF EXISTING LEASES. IF THE CHINESE WISH, WE COULD SHOW THEM IN DETAIL THE LEGISLATION WE INTEND TO INTRODUCE NEARER THE TIME WHEN THE PRECISE FORM OF
WORDING HAS BEEN WORKED OUT.
4. IN LIGHT OF THE CHINESE RESPONSE WE CAN DECIDE LATER WHETHER EITHER TO GIVE THEM FULL TEXTS IN ADVANCE OR SIMPLY TELL THEM THE DATE ON WHICH WE INTEND TO ANNOUNCE WHAT WE ARE DOING, THEIR REACTION TO THIS APPROACH MAY ALSO GIVE US A CLUE ABOUT WHICH OF THE OPTIONS IN MY TELNO.519 TO SELECT.
5. IF YOU AGREE THAT PEKING SHOULD SPEAK ON THESE LINES, I WOULD SEE MERIT IN THE POLITICAL ADVISER GIVING A SIMILAR EXPLANATION TO THE NCNA. THEY WILL BE TOLD BY PEKING WHAT HAS BEEN SAID AND MAY BE ASKED FOR LOCAL ADVICE. IT WOULD DE AS WELL TO KEEP THEM IN THE PICTURE FROM THE START. DOING SO WOULD ALSO AVOID THE SORT OF MISUNDERSTANDING WHICH COULD CREEP INTO COMMUNICATIONS TO THEM FROM THE MFA.
6. INCIDENTALLY, I WAS NOT CLEAR FROM PARA.3 OF PEKING TEL UNDER REF IF SUNG HAD SAID THAT DENG WAS REASSURING ABOUT THE ''ONE PARTICULAR ADJUSTMENT'' OR ABOUT CONFIDENCE IN GENERAL. IF IT WAS THE FORMER, HIS COMMENT IS VERY ENCOURAGING.
MACLEHOSE
FILES HK4&D (6) FED
LEGAL ADVISERS NEWS D
01D
IPD
PS/SIR I GILMOUR PS/MR BLAKER
PS | PUS SIR. A. DUFF MR CORTAZZI
MR. MURRAY
PUSD
PS
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