ourtel ist
011413
See wp
CONFIDENTIAL
4.
HKGD will no doubt wish to consult the Hong Kong Government and others on the idea of a Government guarantee for a privately-raised loan; apart from the Hong Kong Future question, FED would be able to comment on the Chinese internal political implications (foreign loans for concessions have historical echoes for patriotic Chinese). There might also be a claims angle. If this too is a non-starter, we need to be clear in our minds why.
5.
Subject to para.4 and to what Treasury and other Departments say, I think that we must recognise that, at best the UK answer to the Chinese approach is bound to be disappointing. If so we should try to ensure that the Chinese are aware of the realities well before the Prime Minister's visit. Excessive expectations should be dispelled soon, so that any goodies to be brought from the hat in September are properly appreciated.
18 March 1982
cc: Mr Williamson (HKGD)
логох
N J Cox
CONFIDENTIAL