DSR 11 (Revised)

DRAFT:

FROM:

PS/PUS

SECURITY CLASSIFICATION]

Top Secret

Secret

Confidential

Restricted

Unclassified

SECRET

minute/letter/teleletter/despatch/note

DEPARTMENT:

TEL. NO:

TYPE: Draft/Final 1+

Reference

TO:

Separate letters to:

DJ Bowen Esq, Private Secretary to CA Whitmore Esq CVO, Permanent

Under Secretary of State, MOD

Your Reference

Copies to:

J Scopes Esq, Private Secretary to Field Marshal Sir Edwin

Bramall GBC OBE MC, Chief of General Staff, MOD

PRIVACY MARKING

..In Confidence

CAVEAT....

Enclosures-flag(s)........

SUBJECT:

FUTURE OF HONG KONG

Clive Whitmore/Sir Edwin Bramall spoke to Sir Antony

Acland recently about being kept abreast of developments on

the future of Hong Kong. As you know talks began last

October. So far these have been of a preliminary nature

because of China's insistence, contrary to the agreement th

Prime Minister reached with Chinese leaders last September,

that substantive talks can only take place on the premise

that we acknowledge China's sovereignty over the whole of

Hong Kong.

In an attempt to get round this the Prime Minister wrot

to Premier Zhao in March. Our Ambassador in Peking receive

the reply last week and we are at present considering our

response. Strictly for your own personal information I

enclose copies of this exchange. (The Prime Minister's

letter of 10 March and Peking telegram numbers 416 and 439)

As you know, knowledge of this whole subject is being

kept extremely close, on the Prime Minister's instructions.

Only a very small group of officials in the FCO, No 10 and

the Cabinet Office are in the picture. I should therefore

SECRET

/be

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