6.

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On another channel, the Political Adviser gave lunch for the Head of NCNA last week. He steered the conversation round to leases but Mr Wang Guang did not take the bait. Dr Wilson was, however, able to make clear, if NCNA wanted to pursue the question, that the Political Adviser's channel was open to them.

7.

At the meeting on 29 November, I welcomed these moves by Hong Kong to clarify China's thoughts. I asked about progress on consideration of the development proposals submitted for Tin Shui Wai. Mr Akers-Jones said that these were under study and recommendations should go to EXCO in January or February. The Governor urged that work by the Planning Departments be speeded up. He appreciated the problems but it was very important that, if the Chinese were ready to be helpful on the political point, there should be no hold up from a practical point of view. Certainly that aspect must be cleared up well before Lord Carrington's visit to Hong Kong in March.

8.

This led on to a discussion on future tactics in which the Governor repeated the points he had already made in London on the need not to rush the Chinese. (Comment: Both Hong Kong and Peking will by now have received Sir E Youde's letter making clear that we agreed generally with the Governor's views).

9.

I am reporting separately impressions which I gained in Hong Kong on the attitudes of business and other personalities on the general question of the future of Hong

Kong.

2 December 1980

бир

cc Mr Morrice/Mr Williamson

RD Clift

Hong Kong and General Department

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