CODE 18-77

Mr Samuel, FED

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NEW TERRITORIES LEASES

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1. Please see the attached letter from the Governor to Mr McLaren. I discussed the eventuality that has now arisen with Mr Murray before he went on leave, and we concluded, like the Governor, that it could be counter-productive to chivy the Chinese simply in order to meet the October deadline. This deadline was no more than an arbitrary date that we had chosen because it would be a particularly convenient time to make the announcement, but it was not one that had any inherent import- ance. I can see no problem therefore about agreeing with at least the first three of the Governor's conclusions, and if you agree, I shall reply to the letter on the lines of the attached telegram.

4 September 1979

W.E. Chanell

W E Quantrill

Hong Kong and General Department K247 233 4381

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Telegram sent for despatch! HEIC Dwoll

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- 5 SEP 1979

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W Williamson

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Mr Webb Nu ska

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