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we knew the outcome of HMA's dinner with Yao Guang on 1 December.

REVIEW OF STRATEGY:

4. Mr Giffard and Mr Clift felt that the present strategy would not get us very far, although it would probably produce amicable enough discussions for a couple more rounds. Important questions needed to be faced after the 7/8 December round. Some assessment of the way forward needed to be put forward to OD (K) which was meeting at 5.30 pm on 13 December. The Department had prepared a tentative draft paper which dealt inter alia with 2 questions: What we should do if EXCO recommend confrontation, and how far we should get if the present approach is continued. Attached was a draft agreement, comprising a joint agreement and a separate unilateral Chinese

statement. Mr Clift argued that our present course of trying to get down to detail was unlikely to succeed. The Chinese were already saying that much detail should be left to the SAR to decide. was a danger of our losing the initiative, particularly as September 1984 approached.

There

It was agreed that it would be right to present OD (K) with a paper which included the options facing us. Mr Luce recommended an office meeting before OD (K), perhaps on the morning of Friday, 9 December, with a draft paper to be submitted that Friday evening.

CONSULTATION WITH EXCO:

5. EXCO would press for consultations in London, particularly if a change in strategy was suggested. There was discussion on the best timing for a visit by them, bearing in mind Ministers' engagement's and the Governor's planned visit with some EXCO members to New York. There was also the question of whether the new Ambassador, Mr Evans, might have to delay his departure for Peking because of EXCO's visit, ACTION: Mr Clift to liaise with Private Offices to find the most convenient dates for Ministers.

TIMING OF NEXT ROUND AFTER 7/8 DECEMBER:

6.

There was

some discussion of the timing of this round, bearing

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