7.

SEA.

WE THEREFORE SEEM TO BE BETWEEN THE DEVIL AND THE DEEP BLUE

THE GOVERNOR HAS DECIDED THAT IF WE CANNOT REACH AGREEMENT

H MCL WITHOUT PAYING A ROYALTY THEN WE MUST INVOKE THE ESCAPE

AUSE AND FACE THE POLITICAL FALLOUT. 1 HAVE SOME REASON TO HOPE

THAT WE MAY GET AWAY WITHOUT TOO MUCH OF A PROBLEM WITH THE CHINESE. I SPOKE TO THE NCNA IN MAY, PRINCIPALLY TO EXPLAIN TO THEM THAT, IF EXCAVATION IN DEEP BAY WERE TO GO AHEAD, FOR THREE YEARS STARTING IN 1987 THERE WOULD BE UNUSUAL ACTIVITY (DREDGING AND BARGE TRAFFIC) IN DEEP BAY. I ALSO TOOK THE OPPORTUNITY TO INDICATE (OBLIQUELY) THAT THE BORROW AREA WAS ON THE SOUTH SIDE OF THE BAY. LI RUOHE, TO WHOM I SPOKE, WAS VISIBLY PLEASED TO SEE

THE LOCATION OF THE BORROW AREA AND EXPRESSED HIMSELF PERSONALLY CONTENT WITH WHAT WAS PROPOSED. IN HIS LATER MORE FORMAL RESPONSE

HE SAID SIMPLY THAT THE CHINESE SIDE WAS GRATEFUL FOR THE ADVANCE WARNING OF THIS WORK AND UNDERSTOOD THAT DETAILED DISCUSSIONS WERE BEING HELD BETWEEN US AND CHINA RESOURCES. THEY THOUGHT THIS WAS

THE RIGHT CHANNEL. LI'S INITIAL REACTION WAS THUS ENCOURAGING.

THE LATER RESPONSE IS MORE DIFFICULT TO READ BUT COULD MEAN THAT THE SHENZHEN POSITION DOES NOT HAVE NONA'S BACKING.

8.

WE MUST THEREFORE KEEP OUR FINGERS CROSSED. 1 SHALL KEEP YOU POSTED. MEANWHILE, IF YOU OR PEKING HAVE ANY COMMENTS THEY WOULD BE GRATEFULLY RECEIVED.

SIGNED R.N. PEIRCE

YYYY

HMLNAN 4269

NNNN

CODE 18-78

HKK 095/1

RECEIVED IN REGISTRY

Xt kell 12864.

Reference

new file 095/

Klaion Taken

4

Realignment of Sherghen Buen

fr. m/s. minute of 14 xi 86

to

1

ague your proposed

answers (a) & (6)

تھا

k

As I (a), all that is necessary

remors the

کالا

passages wither troch to in

раз

speaking

notr.

We

whatever theoretical arguunt there is

pain 5(a)

then maintain.

to 14

کا

boundary. Para 5(e) avoids the argunt othe

высновану

need

for decision

a

eceptances, but proposing

proovical regime.

Palkfork

12 Xic

Daco 1O

CODE 18-78

་་

AWO Ltd. 7/84

Mr Leeks

Reference.....

HKK 095/1

RECEIVED IN REGI

15 DEC 1986

INDEX

ACSISTRY

Action Taken

Mr Fifoot is in Strasbourg all thik

week returning next Monday.

Could you re-submit these papers

to him then.

Aur Jaster

17.11.

PA/Paul Fifoot

3

Q

los

Sepants mint

No fifort (OR) supert miff

Rutiful for your comments on trying

alte. I

to locate

a copy of the between the 4 thoughen

of the 1982 agreemed

не

севи

24.11.8

ния

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