CONFIDENTIAL
LORD
PRIVY
SEAL
1374
4. It would, I believe, be reasonable to prepare a suitable clause
as put forward in David Trefgarne's letter of 28 September to
Tim Raison. This action would of course be entirely confidential
and without commitment as to the clause's use. A decision on whether
or not to introduce such a clause at the Third Reading in the Lords
would have to be based on a careful assessment of the likely voting
in the Commons on the Gibraltar amendment. This could be made around
18 October. I am prepared to accept that, if we were then confident
that the Gibraltar amendment would be defeated in the Commons we
should not introduce the clause in the Lords. However, if it were
agreed that the amendment was likely to survive it would be important
to limit the damage to our relations with Hong Kong by offering the
fall-back. We might of course need also to consider our line on any
amendment put in by Lord Geddes.
5. If you agree, we shall be prepared to submit a formula for
early discussion.
9 October 1981
CONFIDENTIAL