CONFIDENTIAL

DRAFT NOTES OF MEETING OF WHITEHALL POLICY TEAM ON GUANGDONG HELD ON 23 JULY 1980 AT ASHDOWN HOUSE

Present: Mr A G Manzie

Miss B Parkin

Mr P Morrice Mr Fersland

Mr M Roberts Mr G Field Mr C Benjamin Mr R Mathrani Mr R A Brown

Mr N R Brice

in the Chair

Department of Energy

HKG/FCO

FED/FCO

JNU/FCO ECGD

The meeting was convened to decide on what briefing would be needed

for the forthcoming visit to Sir Lawrence Kadoorie. In addition to

the paper circulated prior to the meeting, also under consideration

were BTC telegrams nos, 99, 100 and 101.

Mr Manzie opened the meeting by saying that the project seemed to be

accelerating, and he was afraid lest HMG lose the initiative. There

were dangers in going foreard, but even greater political dangers in

withdrawing, upsetting both the PRC and also CLP. He was aware that

so far we had only had CLP's interpretation of the Chinese views.

Both HKG and FED considered that Sir Lawrence Kaddorie was attaching

too much political significance to the project in terms of Hong Kong/

PRC relations and the expiring of the Lease. Nevertheless, it was

a major project with considerable political and commercial significance.

In order to be able to brief Ministers for Lawrence Kadoorie's visit

it was agreed that we needed the immediate views of HM Ambassador in

Peling on how the Chinese viewed the project, from both a commercial

and political point of view. It was also important at this stage

to avoid giving the Chinese the impression that we were questioning

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