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4. It would, I believe, be reasonable to prepare a suitable clause as put forward in David Trefgarne's letter of 28 September to Tim Raison. This action would of course be entirely confidential and without commitment as to the clause's use. A decision on whether or not to introduce such a clause at the Third Reading in the Lords would have to be based on a careful assessment of the likely voting in the Commons on the Gibraltar amendment. This could be made around
18 October. I am prepared to accept that, if we were then confident that the Gibraltar amendment would be defeated in the Commons we should not introduce the clause in the Lords. However, if it were agreed that the amendment was likely to survive it would be important to limit the damage to our relations with Hong Kong by offering the fall-back. We might of course need also to consider our line on any amendment put in by Lord Geddes,
If you agree, we shall be prepared to submit a formula for early discussion.
5.
9 October 1981
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