DRAFT

SECRET

DSR 11C

SECRETARY OF STATE'S VISIT TO CHINA: 1-5 APRIL 1981

BRIEF NO.

: CHINESE REPRESENTATION IN HONG KONG

POINTS TO MAKE (Defensive)

1. Present informal arrangements work well. Any major change

might cause difficulties in Hong Kong where it could affect

confidence.

2. (If Pressed):

Do not rule out formal representation at

some future stage, subject to clear definition of function.

especially

Would nevertheless alarm people and businessmen who would see

Have to be accompanied

it as significant political change.

by concrete measures to maintain confidence rather than mere

general assurances.

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