CONFIDENTIAL

Redacted under FOI Exemption S 27 (1)

Redacted under FOI Exemption S 40 and S 41

as Acting Chief Secretary either this week or next.

5.

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For the future, there will be a need to reconsider the

timing of Sir D Akers-Jones's retirement. He himself is·

anxious to provide continuity and advice for the new Governor.

Decisions on whether or how this should be done will of course

have to await the appointment of a new Governor and will be

affected by the timing of his arrival in Hong Kong. One

possibility is that Sir D Akers-Jones could move from being

Acting Governor to "Deputy to the Governor", a position which

is provided for in the Letters Patent and which can be given

whatever responsibilities the new Governor thinks fit.

Policy Implications

6. The 1987 Review.

that we face a very

difficult period next year over the 1987 Review, with a

substantial risk of serious confrontation with the Chinese.

We discussed informally with Sir D Akers-Jones, Mr Ford and

Mr Boyd whether Sir E Youde's untimely death gave us an

opportunity of escaping from the impending dilemma by either

postponing the Review for a year or stretching out the process

of consultation: both devices would be designed to fit better

than the present timetable with Chinese timing on the draft

Basic Law. Clearly there might be heavy political costs in such a policy: it could all too easily be portrayed as

reneging on a commitment. Such a different approach could

probably only be attempted if there was some groundswell of opinion advocating such a course. This is not apparent at

present; nor indeed would one expect it so soon. EXCO's

present mood is in the contrary direction.

7.

The Acting Governor will send us a telegram in about a week giving further views on this point.

CONFIDENTIAL

18.

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