SECRET D E DI P
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PROPOSALS. BUT WITHOUT PREJUDICE TO OUR OWN POSITION WE SHOULD EXAMINE WHETHER ARRANGEMENTS COULD BE DEVISED WHICH WOULD ENSURE THE MAINTENANCE OF STABILITY AND PROSPERITY WE EXPLAINED THE CONSTITUTIONAL CONSTRAINTS WITHIN WHICH HMG MUST OPERATE BUT
SAID THAT IF (AND ONLY IF) SATISFACTORY ARRANGEMENTS COULD BE AGREED HMG WOULD BE PREPARED TO RECOMMEND TO PARLIAMENT AN AGREEMENT
ON THOSE LINES.
6. THE CHINESE APPEARED TO UNDERSTAND THE SIGNIFICANCE OF THIS
HMA PEKING'S ASSESSMENT IS THAT ON THIS BASIS WE NOW HAVE A REASONABLE CHANCE OF GETTING INTO MORE DETAILED DISCUSSIONS. MEANWHILE INFORMAL CONTACT WILL BE MAINTAINED BETWEEN THE NEGOIATORS.
7.
WE AIM TO CONCENTRATE INITIALLY ON AREAS IN WHICH WE STAND
SOME CHANCE OF REACHING COMMON GROUND E.G. HONG KONG'S LEGAL AND FINANCIAL SYSTEMS.
8. HONG KONG'S EXECUTIVE COUNCIL WITH WHOM WE CONTINUE TO BE IN CLOSE TOUCH HAVE AGREED THE ABOVE APPROACH. WE HOPE THAT IT WILL ENABLE US TO MAKE FURTHER HEADWAY THOUGH ARE UNDER NO
ILLUSIONS ABOUT THE TOUGH PATH AHEAD.
HOWE
FUTURE OF HONG KONG
COPIES TO:
LIMITED
MR ROBERTS
HD/HKD
MR BURROWS
HD/FED
HD/PLANNING STAFF
HD/PUSD
D/HD/PUSD(MR FLOWER)
RESEARCH DEPT(MR WALKER)
LEGAL ADVISER (SIR IAN SINCLAIR)
PS
PS/LADY YOUNG
PS/MR LUCE
PS/PUS.
SIR J BULLARD
MP GIFFARD
MR DONALD
MR WRIGHT
2
MR MARTIN
MR COLES
NEWS DEPT
LEGAL ADVISER ASSESSMENTS STAFF
CABINET OFFICE
NO 10 DOWNING ST
SIR A PARSONS
MR GOODALL CABINET OFFICE
SIR PHILIP MOORE BUCKINGHAM PALACE PS/LORD PRESIDENT OF THE COUNCIL
PS/HOME SECRETARY
PS/CHANCELLOR OF THE EXCHEQUER
PS/S OF S FOR DEFENCE
PS/LORD PRIVY SEAL
PS/SECRETARY FOR TRADE AND INDUSTRY
PS/ATTORNEY GENERAL
MR BRENNAN CABINET OFFICE
SECRET
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