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RECALL IN THIS CONNECTION JI PENGFEI'S RECENT PEMARKS TO DONALD LIAO NR- (MY TELNO 2290). THERE IS NO DOUBT THAT XU JIATUN HAS BEEN ANGLING

FOR A DIALOGUE FOR SOME WHILE (SEE FOR INSTANCE MY TELNO 2211).

IT WOULD BE IMPORTANT TO MAKE HIM PART OF THIS, IF HE IS TO PLAY A CONSTRUCTIVE RATHER THAN DESTRUCTIVE ROLE. N.C.N.A. ARE ALREADY AWARE OF OUR INTEREST IN INFORMAL EXCHANGES.

5. NEITHER THE CHINESE NOR WE ARE LIKELY TO WANT TO SEE THE DIALOGUE IN HONG KONG TAKE TOO OVERT A FORM. THIS WOULD ONLY LEAD

TO PUBLIC PRESSURE ON US AND THEM TO REVEAL THE SUBSTANCE.

233

6. IN ADDITION, PEKING ARE BOUND TO BE SENSITIVE ABOUT WHAT THEY

MIGHT SEE AS AN ATTEMPT BY HONG KONG TO REVIVE THE THREE LEGGED

STOOL. I HAVE NO DOUBT THAT THEY WILL WANT THE DIALOGUE TO TAKE

PLACE IN A BRITISH RATHER THAN A HONG KONG FORMAL FRAMEWORK. IN

THE CIRCUMSTANCES, THE BEST THING WILL BE TO AVOID PUTTING TOO

CLEAR A LABEL ON THE CHANNEL. IT MAY ALSO HELP COSMETICALLY IF WE

DRAW FROM TIME TO TIME ON THE EXAMPLE OF MCLAREN'S BRIEFING OF

LU PING IN PEKING IN NOVEMBER 1984 JUST PRIOR TO THE PUBLICATION OF THE WHITE PAPER (PEKING TELS NOS 2782 TO 84). BOYD COULD EASILY

VISIT PEKING TO BRIEF THE CHINESE UNDER EMBASSY AUSPICES IN THE SAME WAY. WERE THE CHINESE TO PRESS US ON OUR DEFINITION OF INFORMAL CHANNELS, WE MIGHT REFER TO THE MCLAREN PRECEDENT.

LINE TO TAKE

7. I HOPE THAT INSTRUCTIONS MAY ISSUE QUICKLY TO HMA PEKING TO

SPEAK TO THE CHINESE. ON THAT OCCASION, SIR P EVANS MIGHT MAKE THE FOLLOWING POINTS IN ADDITION TO THOSE IN PARA 2 OF YOUR TELNO 1788:

(A)

(B)

(C)

(D)

IMPORTANT THAT UK ADMINISTER HONG KONG WELL AND BE SEEN TO DO

SO FOR THE NEXT 12 YEARS. NO QUESTION OF HMG ABDICATING

RESPONSIBILITY.

NOTHING UNTOWARD IS AFOOT. WE HAVE ONLY DONE WHAT WE TOLD

THE CHINESE A YEAR AGO WE WERE PROPOSING TO DO. NO DECISION WILL BE TAKEN ON THE ITEMS THAT ARE TO BE COVERED IN THE 1987

REVIEW IN ADVANCE OF THAT REVIEW. THERE IS PLENTY OF TIME FOR EXCHANGES.

MEANWHILE, HMG GRATIFIED TO NOTE INVOLVEMENT OF HONG KONG PEOPLE IN THE BLDC AND BLCC. WE ACCEPT AS SINCEPE THE CHINESE

POSITION THAT THEY PLAN TO CONSULT THE PEOPLE OF HONG KONG

ON A WIDE BASIS. IT REMAINS IMPORTANT FOR ALL CONCERNED THAT

THE LOCOMOTIVE'' REMAINS ON THE RAILS AND THAT THE NEW

ARRANGEMENTS WHICH EVOLVE ARE DURABLE.

WE MUST HOWEVER BE CAREFUL ABOUT THE FRAMEWORK. THE CHINESE

SIDE KNOW AS WELL AS WE DO HONG KONG SENSITIVITIES REGARDING

THE JLG. FORMAL DISCUSSION HEPE WOULD GIVE THE SUBJECT A HIGH

PUBLIC PROFILE. MANY WOULD SEE SUCH DISCUSSION AS INVOLVING THE

JLG DIRECTLY IN ADMINISTERING HONG KONG BEFORE 1997 OR EXERCISING A SUPERVISORY ROLE OVER THAT ADMINISTRATION. THIS WOULD NOT PROMOTE CONFIDENCE. WE HAVE NOTED IN THIS CONNECTION AN ARTICLE IN THE LATEST ISSUE OF MIPROR MAGAZINE CALLING FOR CONSULTATIONS IN THE JLG. SUPE CHINESE

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