SECRET

(b) Defence and Internal Security.

(c)

(d)

Draft agreed with Hong Kong and

Peking. About to be submitted to Secretary of State and Mr

Heseltine.

Hong Kong Public Service. Hong Kong to provide a draft.

Governor has raised a number of technical points for discussion

this week.

Central Government Structures. Governor's paper considered by EXCO. Now before OD (K). Working paper depends on Ministers'

discussions with EXCO and decisions on key points.

X

EXCO

7. The Governor has emphasised the need for the working papers to

be discussed with EXCO. This is even more important for those on key issues. The problem is whether EXCO should be consulted before

or after Ministers, including those of other Departments, have made decisions on the basic points. This is tricky, particularly on

questions such as nationality, where UK domestic policy is closely

affected. In practice we shall have to have at least a preliminary

run over the ground during the EXCO Unofficials' visit. We should

show them the draft papers on nationality and defence and ask for

their views, while making clear that the Ministers position is fully

reserved.

Dir

R D Clift

9 January 1984

Hong Kong Department

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