GR 320

SECRET

FM PEKING 2710152 JAN 84

SECRET

TOP COPY

TO IMMEDIATE FCO

TELEGRAM NUMBER 159 OF 27TH JAN 84

RECEIVED IN NEGISTRY

INFO IMMEDIATE HONG KONG

HICK CIA 96, HECK

97

04019

12M 1984

OSO

FR

EGISTRY

INDEX

Hoy joker

CH/2

33333

MY TELNOS 144 AND 157: FUTURE OF HONG KONG: THE WAY AHEAD.

1. I HAVE GAINED TWO PARTICULARLY STRONG IMPRESSIONS DURING

THE PAST FEW DAYS. THE FIRST IS THAT THE CHINESE ARE

PRISONERS OF THEIR PUBLIC COMMITMENT TO MAKE A UNILATERAL

STATEMENT ABOUT THEIR OWN PLAN IN SEPTEMBER 1984 IF NO

AGREEMENT WITH US HAS BEEN REACHED BY THEN. THE OTHER IS

THAT THEY ARE DEEPLY SUSPICIOUS ABOUT THE REASONS WHY WE HAVE

NOT BEEN ABLE TO TABLE OUR REMAINING WORKING PAPERS MORE

QUICKLY.

2. ON THE FIRST OF THESE, THE PREFERRED ESCAPE ROUTE OF THE

CHINESE IS TO WORK FOR COMPLETE AGREEMENT WITH US BEFORE

SEPTEMBER. THIS, IN THEIR VIEW, WOULD ENTAIL COMPLETING

ITEMS OF THE AGREED AGENDA AND WORKING OUT THE TEXT DISCUSSION WITH US OF ALL THREE OF A BILATERAL AGREEMENT. I

SHALL TELEGRAPH ABOUT THE IMPLICATIONS OF THIS AS THEY APPEAR

TO US HERE AFTER THE WEEKEND.

3. ON THE SECOND, IT WILL BE HARD TO CONVINCE THE CHINESE

THAT THE ONLY REASON WHY IT IS TAKING SOME TIME TO TABLE

THE PAPERS IS THE REASON WHICH WE HAVE GIVEN, IE THAT THEY DEAL WITH IMPORTANT SUBJECTS WHICH REQUIRE VERY THOROUGH

CONSIDERATION.

4.

ABOVE AND BEYOND THIS, WE FACE A DIFFICULT OPERATIONAL PROBLEM. HOW DO WE GET TO, AND THROUGH, THE NEXT ROUND WITHOUT DAMAGING THE EVIDENT WILLINGNESS OF THE CHINESE TO STUDY, RESPOND TO AND (WE BELIEVE) ABSORB INTO THEIR OWN

PLANNING THE CONTENT OF OUR WORKING PAPERS? THE GOVERNOR

TOLD ME THIS MORNING THAT HE INTENDED TO TELEGRAPH SOME

RECOMMENDATIONS TO YOU ABOUT THIS SHORTLY. I WILL COMMENT

WHEN HE HAS DONE THIS. MEANWHILE, I THINK THE ASSUMPTION ON

Amended by

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