CONFIDENTIAL

FM PEKING

O TELELETTER HONG KONG

TE LETTER

LETTER NER

OF 100812Z NOVEMBER 86

Пал

pa

Bik

6

TELELETTER DATE 10 NOVEMBER 1986:

FROM: D G BLUNT ESQ.,

BRITISH EMBASSY PEKING.

ΤΟ

RN PEIRCE ESQ.,

DPA, HONG KONG

CC

: A M LAYDEN ESQ.,

HONG KONG DEPARTMENT, FCO.

HKK 095/1

AFGELEC B

15 DEC 1986

HEGISTRY

(Avion Taken

5

YOUR TELELETTER OF 5 NOVEMBER TO LAYDEN:

TIN SHUI WAN.

1. WE AGREE THAT THE COURSE OF ACTION OUTLINED IN PARAGRAPH 6 OF TLUR IS THE BEST TO BE FOLLOWED.

IF

2. IT IS JUST POSSIBLE THAT ONCE SHENZHEN REALISE HKG'S DETERMINATION NOT TO PAY A ROYALTY, THEY WILL DROP THEIR DEMAND. NOT, AND YOU INVOKE THE ESCAPE CLAUSE, I WOULD HAVE THOUGHT IT UNLIKELY THAT PEKING WOULD BE WILLLING TO SUPPORT SHENZHEN IN A ROW WHICH WOULD BECOME PUBLIC OVER BOUNDARIES AND ALL THAT THIS WOULD ENTAIL AS 1987 (A VERY SENSITIVE TIME FOR HONG KONG PEKING RELATIONS) APPROACHES. THIS WOULD NOT, OF COURSE, RULE OUT SHENZHEN KICKING UP A FUSS LOCALLY. BUT I IMAGINE THIS WOULD CREATE FAR FEWER WAVES THAN ANY APPROACHES BY, OR SANCTIONED BY PEKING.

SIGNED:

D G BLUNT

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