10.

CONFIDENTIAL

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ARE

4. THE CHINESE WILL HAVE NO GROUNDS FOR SUSPICION THAT WE UP TO TRICKS'. IT WAS MADE QUITE CLEAR TO THEM THAT THERE WERE VARIOUS PROCESSES TO BE COMPLETED AND THAT SIX MONTHS WAS REQUIRED FOR THIS. YOU WILL RECALL THE GREAT DIFFICULTY WE EXPERIENCED IN GETTING THE CHINESE TO ACCEPT THAT WE NEEDED UP TO THE END OF JUNE 1985 TO COMPLETE THE NECESSARY LEGISLATIVE PROCEDURES. TO BE READY TO RATIFY BY MID-APRIL COULD CALL INTO QUESTION THE CREDIBILITY OF THE AGREEMENTS PUT TO THEM BY THE SECRETARY OF STATE IN APRIL. NOR ARE THE CHINESE THE ONLY ONES TO BE CONSIDERED. HMG AND THE CHINESE DECIDED ON JUNE 30 AND OUR PLANNING HAS

BEEN DONE WITHIN THAT TIME FRAME. IT WOULD NOT BE EASY TO EXPLAIN WHY HONG KONG'S LEGISLATIVE PROCEDURES HAD TO BE CONDENSED TO MEET SOME NEW ARBITARY DATE FOR RATIFICATION.

YOUDE

HONG KONG AGREEMENT

LIMITED

HD/HKD

HD/FED

HD/PLANNING STAFF

HD/PUSD

DEP HD/PUSD

RESEARCH DEPT (MR WALKER) PS

PS/MR LUCE

PS/PUS

SIR W HARDING

MR WILSON

SIR J FREELAND

MR J CROWLEY, PUSD

COPIES TO: (VIA ADR)

MR ROBERTS, NEWS DEPT

MR FIFOOT, LEGAL ADVISERS

MR BURROWS, LEGAL ADVISERS

MR KARTIN, ASST STAFF CABINET

OFFICE

MR CARTLEDGE, CABINET OFFICE MR B R C CHRISTOPHER, CABINET OFF. SIR P CRADOCK, NO 10 DOWNING ST

MR EMERY BY HOME OFFICE,

CROYDON

MR HYDE, HOME OFFICE,

CONFIDENTIAL

QUEEN ANNE'S GATE

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