OPTION E

THE TROUBLE ABOUT THIS IS THAT IT REQUIRES ACTION BY THE CHINESE, BUT NO QUID PRO QUO FROM HMG. FOR THIS REASON

"

I DOUBT WHETHER IT WOULD HAVE MUCH ATTRACTION FOR THE CHINESE. BUT IF THERE WERE, AS STATED, A CLEAR UNDERSTANDING'' THAT BRITISH ADMINISTATION WOULD CONTINUE BEYOND 1997, AND

THIS COULD BE MADE PUBLIC, THE CHANGE FROM THE PRESENT CHINESE POSITION WOULD BE MORE THAN 'SLIGHT'' AND THE EFFECT SHOULD

BE BENEFICIAL EVEN IF THERE WERE, FOR THE TIME BEING, NO

AGREEMENT THAT HMG SHOULD TAKE SPECIFIC ACTION TO REMOVE THE TIME

LIMIT BUILT INTO THE 1898 ORDER IN COUNCIL.

OPTIONS C AND D

I AGREE GENERALLY WITH THE ASSESSMENTS OF THE LIKELIHOOD AND IMPLICATIONS OF THESE.

OPTION E

I SEE WHY THIS HAS BEEN INCLUDED, BUT, LIKE YOU, , |

DOUBT WHETHER IT IS A STARTER.

7. MY ONLY OTHER COMMENT AT THIS STAGE IS THAT AN ADDITIONAL OPTION SHOULD BE ADDED TO MATCH AS CLOSELY AS POSSIBLE THE

SCENARIO OUTLINED BY DENG TO MR HEATH. THIS WOULD INVOLVE COMBINING, TO THE EXTENT POSSIBLE, THE REQUIREMENTS LAID DOWN BY DENG WITH CONTINUING BRITISH ADMINISTRATION. THE

LEGAL ADVISERS MAY WELL TAKE THE VIEW THAT THERE CAN BE NO RECONCILIATION OF THE TWO UNLESS CHINESE REQUIREMENTS ARE RELAXED. BUT DENG'S STATEMENT IS THE CLEAREST WE HAVE OF THE PRESENT CHINESE POSITION AND IT WOULD BE PRUDENT TO INCORPORATE AS MANY OF ITS FEATURES AS POSSIBLE.

SIGNED: R JT MCLAREN.

NNNN

Share This Page