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4.

Mr Hammond said that the meeting had perhaps been a little short (about 20 minutes). Though he had not understood it at the time, it appeared that LIAO had been ready to continue for longer. O W Lee confirmed that this was his impression. Concluding, Mr Hammond said that LIAO had made it clear that he would be ready to see him or

Mr Sandberg on another occasion so the door was open for a

further visit, which could be better prepared. I said

that a start had been made and I hoped it would be followed

up in due course. It was important that the Chinese should

be brought to understand the real concerns felt by Hong Kong

businessmen, including banks, about their plan for the

future.

5.

I am recording some other points made by Mr Hammond and Mr Lee separately.

cc S (GD)

Sir P Cradock KCMG, PEKING A E Donald Esq CMG, FCO D

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(R JT McLaren)

PA

9.5.83

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