CONFIDENTIAL

-2-

This

Prime Minister our thoughts on possible options, including mention

of the sovereignty issue, I think we must try to impress upon

Mr Heath the need for caution when talking about this subject.

would come most effectively from the Secretary of State and the

attached draft takes this into account.

5.

General background material on Japan, China and Hong Kong is

being sent separately to Mr Heath's office.

24 March 1982

Вир

R D Clift

Hong Kong and General Department

сс

PS/LPS

Mr Giffard Sir E Youde

Mr Elliott FED

و

think it wiser to concentrate

in what Mr. Healt might day

in

Hong Kong press)

public (e.g.

to the Hong

and

not to encourage him to

enter discussion in beling with the

Chinese authorities.

made

I have this

a few amendments,

CONFIDENTIAL

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