SECRET AND PERSONAL
and viability of their plan to make
Hong Kong a Special
Administrative Region of China and at forcing us to
make concessions in the talks. So far its main effect
has been to weaken confidence in Hong Kong and to cause
considerable pressure on the Hong Kong dollar. It is
clear that we are now approaching a critical stage.
4.
in
Veuv
-Richard Luce's visit last week to Hong Kong enabled
Svisit
him to have detailed discussions with Hong Kong's
m
Executive Council as well as with the Governor and our
Ambassador who was over from Peking. The Unofficial
members of the Executive Council, together with the
Governor and the Ambassador, are visiting London later
now this week to continue their discussions with Ministers
here. It is too early to say what line will emerge for
use by the Ambassador at the next round of talks but there
me are
is no doubt that we have to look very carefully indeed
at our position. before then.
1/
is EXCO's visit will be an
and I'm cos's office
important stage in this process.
5.
you would keep
I should be grateful if, as before you
these papers very close. The Chief of Defence Staff is
of course in Hong Kong now He will bring back his own
impressions of the situation.
A copy of this letter and
its enclosures goes to his Private Office.
SECRET AND PERSONAL