SECRET

-2-

5. The Governor is particularly concerned that we should say nothing publicly that would encourage speculation that we were questioning Hong Kong's status. It is only too easy for

journalists and others to start stories alleging UK/Chinese plans for a 'sell-out' of Hong Kong. The Governor has, therefore, particularly asked that we should, so far as possible, deny that we intend to raise the subject of the future with China. Obviously a bald negative would be unconvincing.

therefore tries to steer the subject on to the safer ground of our present mutual interest in preserving stability.

23 March 1981

B

R D Clift

r

The attached formula

Hong Kong and General Department.

CC

PS/Mr Blaker PS/PUS

Mr Fenn, News Department

Mr McLaren, FED

SECRET

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