caveats which are contained in paragraphs 2-4 of the memorandum of 19 June are referred to only in section III and as explanations of the British side on the same basis as the Chinese statements that personal civil and criminal immunities should be accorded. It will be open to the Chinese to argue that all the matters mentioned in section III will be dealt with by the further talks, but until they take place the Visa Office will be governed by sections I and II: i.e. the Chinese will not insist on personal immunities and the Hong Kong author- ities will ensure that the privileges are accorded. The Hong Kong position would be strengthened by including the caveats in section II, so that the privileges listed would be granted subject to the understandings contained in paragraphs 2-4 of our memorandum. The Chinese could still be recorded as simply noting these paragraphs. I have shown how this could be done on the attached draft.
2. I suggest that the words "according to usual practice" be deleted from paragraph III(3): there is no usual practice of this kind for a
governmental office with no diplomatic or
consular status.
11 August 1981
Midet Gr
E S Wilmshurst Legal Advisers