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Commission in Hong Kong (telegram No.108) confirming that Sir Lawrence
is indeed planning a major briefing for Lord Carrington in Hong Kong.
Argument
9. There are a number of major financial and technical questions
still to be considered before a definite answer can be given to
Sir Lawrence Kadoorie on HMG's participation in the project. Never-
theless, the Prime Minister, in particular, reacted very enthusiastic-
ally to the Guangdong project when she met Sir Lawrence and saw it as
"an opportunity that we must not let slip". She thought the Chinese
might well see it as an earnest expression both of their own and of
Britain's faith in the future of Hong Kong. Although considerable
progress should be made by the Secretary of State's visit at the end
of September, a final decision by then is very unlikely. It would, in
addition, not be helpful to give the Chinese the impression that we
see the Guangdong project as central to any discussions on problems
related to the future of Hong Kong. We agree with Sir Lawrence that
the project is of political significance as a major confidence-building
measure, but we do not believe that the Chinese see it as leading
directly to a solution of the problem, or indeed that they are ready
for such a step.
10. The Secretary of State will probably meet Sir Lawrence Kadoorie
in Hong Kong in any case and the project will be discussed. But there
would not be time for a major technical briefing there. In Peking,
the Secretary of State may wish to refer to the scheme, but again sub-
stantive discussion would not be appropriate. It would certainly be
confusing to the Chinese and not helpful to the visit as a whole if
Sir Lawrence Kadoorie were in Peking at the same time.
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