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WOULD CERTAINLY TAKE ACTION ON THEIR SIDE TO MATCH. HE SEEMED TO HAVE NO HESITATION IN ASSOCIATING THEIR ACTIONS WITH OURS. IN REPLY TO MY REMARK THAT ONE COULD NOT FORSEE WHAT WOULD HAPPEN IF WE BOTH FAILED TO SEIZE THIS OPPORTUNITY, HE SAID REPEATEDLY THAT HE WAS SURE THIS WOULD NOT HAPPEN. HE APOLOGISED FOR NOT ATTENDING THE MORNING'S MEETING, SAYING THAT SINCE HE WOULD LEAVE FOR PEKING AS SOON AS GOVERNOR XI RETURNED HE HAD THOUGHT IT BETTER FOR THE DISCUSSION TO BE WITH THE VICE GOVERNORS WHO WOULD ACTUALLY BE RUNNING THINGS AFTER HIS DEPARTURE.
5. THE PUBLIC SECURITY REPRESENTATIVE AT THE DINNER INTERVENED REPEATEDLY TO SAY THAT ORDERS TO STEP UP COUNTER MEASURES HAD ALREADY BEEN ISSUED FOLLOWING THIS MORNING'S DISCUSSION.
6. SINCE THE CHINESE HAVE CONFIRMED THAT THE CHANGE OF POLICY WILL BE OF SIGNIFCANT HELP TO THEM AND, WITH VARYING DEGREES OF FORTH- RIGHTNESS, THAT THEY WILL USE THE OCCASION TO MOUNT THEIR OWN OFFENSIVE AGAINST ILLEGAL MOVEMENT, I NOW FEEL JUSTIFIED IN GOING AHEAD.
7. BECAUSE OF YANG'S DEPARTURE AND XI'S ABSENCE FOR THE NEXT THREE OR FOUR WEEKS I HAVE SUGGESTED THAT IF XI DOES NOT RETURN THROUGH HONG KONG (MOST UNLIKELY) WILSON SHOULD VISIT GUANGZHOU AFTER XI'S RETURN TO REVIEW PROGRESS IN ABOUT SIX WEEKS. AGAINST THE BACK- GROUND OF THE ASSURANCES GIVEN, THIS SHOULD ALLOW US TO URGE THE CHINESE TO STEP UP PRESSURE IF NECESSARY.
8. I WILL REPORT TO EXCO TOMORROW (WEDNESDAY) AND HAVE NO DOUBT THEY WILL ADVISE CHAMPION SHOULD GO AHEAD AS PLANNED ON 23
OCTOBER.
9. A REPORT ON OTHER MATTERS DISCUSSED (E.G. ECONOMIC Co- PERATION AND CHINESE COMPLAINTS ABOUT THE TREATMENT OF CHINESE PASSPORT HOLDERS TRANSITTING HONG KONG) WILL FOLLOW BY BAG.
MACLEHOSE
LIMITED
HK & GD
FED PS
PS/LPS PS/PUS
SIR E YOUDE
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