CONFIDENTIAL
-2-
7.
Many important practical aspects. Problem of maintaining
credible independent currency. Legal system. Freedom of press.
8.
No advantage in overt propaganda confrontation with
Chinese.
We are concentrating on maintaining and making progress
in the talks.
9.
Maintaining close contact with Hong Kong Executive Council.
Need to maintain their confidence. Governor discussed position
fully with them before his recent visit to London with the
Ambassador.
10.
Important to work together in maintaining confidence in
Hong Kong. In view of delicacy of negotiations, grateful for
help in keeping public and parliamentary interest to a minimum
at present.
FOR DEFENSIVE USE IF ASKED ABOUT THE PRIME MINISTER'S MESSAGE TO PREMIER ZHAO
11.
Strictly for your own information the Prime Minister has
sent a message to Premier Zhao, in which it is made clear that
the question of sovereignty is not in the Government's gift and
that Parliament alone has the power to decide on this. The
main purpose of the message is to get substantive talks under
way.
CONFIDENTIAL