Х

SECRET

(i)

(ii)

paragraphs 11-13 propose the establishment of "a special assessment office" and some independent "auditors" to check its working. The Secretary of State believes that this in practice means the creation of a Pearce Commission in Hong Kong which he has all along considered to be a highly undesirable proposition;

on the timetable, the Secretary of State notes the assumption in para 17 that the agreement would be initialled at the very end of September. He had been hoping that this would be possible in mid-September since he himself will be at the UN General Assembly in the last week of September. On the question of the debate in Parliament, he has commented with reference to paragraph 19 that he had always assumed that this would not take place until early December.

11 June 1984

cc: PS/Mr Luce

PS/PUS

Sir P Cradock

Dr Wilson

FED

Mr Burrows, Legal Advisers

datts

(P F Ricketts)

SECRET

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