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4. Lord Shepherd said that he had just written a letter to

the Lord Privy Seal and we will have a more accurate account

than this record. However, he asked for three points in

particular to be considered:-

(i) he hoped it would be possible when the Prime

Minister visited Peking that there would be some

improvement on the 'hearts at ease' formula;

(ii)

it would be much appreciated if the Prime

Minister could meet some of the Chinese business

community when she was passing through Hong Kong.

Lord Shepherd did not think that a normal cocktail

reception would fill the bill. Was there some way

in which she could meet people like Mr Li Ka-shing

and Mr Fung King-hey in some other rather more formal way?

(iii) would it be possible for the Political Adviser

to indicate to the business community that the

recent Parliamentary delegation to China was not a governmental delegation and that their comments did not represent governmental thinking?

See(271

5. I thanked Lord Shepherd for passing these views on.

I said that it was quite likely that the Governor and

Mr McLaren were already aware of what had been said by the

MPS and were no doubt answering questions. Lord Shepherd

seemed surprised to learn that Sir Murray MacLehose was still at his post. As far as the arrangements for the Prime

Minister's visit to Hong Kong, I said that Sir Edward Youde

would no doubt be taking all these thoughts into account in

preparing for it. It seemed unlikely that Mrs Thatcher would not meet leading businessmen during her visit, possibly at the

Governor's table.

30 March 1982

Astonald

A E Donald

CONFIDENTIAL

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