specifically mentioned

as a

If we

were

which

subject for discussion. to collaborate infor fail to resist, new arrangements caused Hong Kong's position in the MFA to deteriorate, we would expose ourselves to Chinese criticism in the JLG and, more importantly, we should be on weaker ground i f we had to resist any Chinese proposals for the post-1997 period which view would damage Hong Kong's trading position.

6.

in

Our

I think it essential that we should consult Hong Kong formally

at an early stage

in

formulating our negotiating position. When would you propose that this should be done?

7.

Since drafting the above, I have seen a copy of John Shepherd's letter

of 20 February to Hal1

Hall (DTI), based on the draft enclosed with your minute under reference, and have spoken to you on the telephone. I a m glad that you have told DTI to expect more comments, incorporating our views and those of other FCO departments not covered

in the letter. A s I said on the telephone, we hope that this will be done in

letter.

a further

R N Peirce

18 February 1985

cc: Mr Orr, FED

Hong Kong Department WH 306 233 4381

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