SECRET

Paragraphs 5 and 6 deal with the specific problem of Hong

Kong crown servants.

3. I agree with the draft telegram. It would be possible, I suppose, to strengthen paragraph 1(d) of the draft telegram by saying that the Home Secretary appreciated the strength of

feeling and the importance of retaining the loyalty of crown servants in Hong Kong, and that he would consider whether

anything could be done within the structure of the Bill. On

balance, however, I think Mr Clift's formula will do for the

time being. We do not want to raise too many hopes, since I

think at the end of the day it may not be possible to alter

the Bill far enough to meet all Hong Kong's anxieties.

10 February 1981

Autmald

A E Donald

SECRET

11/2.

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