SECRET

7. Handling: I understand that a provisional arrangement has

been made for OD to discuss Hong Kong on 8 September. However I

wonder whether these papers ought to be given any wider circulation.

The issue of a concession on sovereignty is, of course, familiar

to the Prime Minister and I hope that in the Study the issue is introduced in a way which will commend itself to her. But, with

respect, I have doubts about presenting a paper on this difficult

issue to OD.

27 August 1982

cc: Mr Giffard

Mr Donald

Mr Clift (HK&GD)

M. A. Arthur

PP.

(BELSTEAD )

(approved by Lord Belstead and signed in his absence)

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