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3. DURING THE DISCUSSION LI CLAIMED THAT THE CHINESE PATROL

CRAFT HAD BEEN MORE SEVERELY DAMAGED THAN THE HOVERCRAFT. BUT, APART FROM SAYING THAT THE PATROL CRAFT WAS THE PASSIVE ACTOR IN THE INCIDENT, HE DID NOT MAKE A SERIOUS ATTEMPT TO APPORTION BLAME: NOR DID HE REFER TO COMPENSATION. LI REFERRED

TOTTHE EARLIER MIRS BAY INCIDENT AS A POSSIBLE CONTRIBUTORY FACTOR IN THIS CASE, BUT HE DID NOT PURSUE THE POINT. THE DISCUSSION CONCLUDED WITH LI AGREEING WITH THE PA THAT SUCH

INCIDENTS SHOULD BE SETTLED BY CO-OPERATION IN A FRIENDLY ATMOSPHERE

AND NOT BY RESORTING TO FORCE OR THE THREAT OF IT.

4. THE TONE OF LI'S REMARKS WAS FRIENDLY AND HELPFUL. WITHOUT ACTUALLY APOLOGISING, HE MANAGED TO CONVEY THE IMPRESSION THAT

HE THOUGHT THE CHINESE SIDE HAD BEEN WRONG IN BOARDING THE

HOVERCRAFT AND DISPLAYING WEAPONS.

MACLEHOSE

FILES

HKr GD

FED

DEF D

PUSD

NEWS D

OID PS PSILPS

PSI MR BLAKER

PSI MRRIDLEY

PS | MR HURD

PS PUS

[THIS TELEGRAM WAS NOT ADVANCED]

SIR.D. MAITLAND SIRA ACLAND MR CORTAZZI

MRMURRAY, MR. P. H. MOBERLY

COPIES

TO

HONG KONG GOVERNMENT OFFICE

LONDON

2

CONFIDENTIAL

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