DSR 11C
SECRET
-5-
I doubt if the
It
8. The next step will be to form a clear view of our
own aims before your visit in September.
Chinese will be prepared for full scale negotiations then
but you will not be able to avoid raising the subject.
There is a reasonable chance that you would be able to
get agreement at least on continuing discussions.
would therefore be helpful now to clarify our ideas on
our own bargaining position, including the question of
sovereignty. You may find it useful to see the enclosed
paper which discusses a number of possible options. None
of these are definitive but the paper gives some idea
of the limits within which we might work. I suggest
that you might now find it useful if Humphrey Atkins and
I were to go over some of the ground with you. You might
then like to consider discussing the question with other
colleagues (not necessarily in full Cabinet) in order
to work out a line for your visit. If you think it
useful we could in addition arrange a meeting with the
present Governor of Hong Kong and the Ambassador in
Peking, as well as Sir Edward Youde.
SECRET