Mr Layden, HKD

CONFIDENTIAL

Les that

Secretary of State's Talk with Y K Pao

The Secretary of State was grateful for the comprehensive briefing which you submitted on 13 March.

He went over the substance of Brief I (Representative Government) with Y K Pao, in general terms. Y K Pao did not dissent from any of it, but made no real comment.

The Secretary of State also covered paras 1, 2 and 4 fid of Brief IV (Scholarship Funds). Y K Pao agreed that it

would be good to have tripartite discussions, with two experts representing China, the UK and himself. The Secretary of State underlined the need to make progress.

* experts, via hon tart

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The Secretary of State did not ask about Y K Pao's understanding of the Chinese position. Y K Pao said that he would be glad to see Mr Raison during his stay in Britain, to cover this in greater detail. As you know, he has also now decided to have breakfast on 19 March with Lord Young, when the same subject is likely to come up (you are kindly providing a brief).

The Joint Liaison Group (Brief IX) was discussed in general terms. The Secretary of State did not raise the other topics on which you briefed, although he may have a chance to do so when he dines with Y K Pao tonight.

17 March 1986

c.c:

PS/Mr Renton Sir W Harding FED

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(R N Culshaw)

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1) cc (wit Back II): m. witte, (R)

(Immediate)

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Me Roma

4 wilf Ch. Streto

N. McLean, (AAS), DA

Arom

CONFIDENTIAL

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