[CHINA:

DIPLOMATIC PARKING]

cc Mr Gillmore

Protocol Dept

FED HKD

CONFIDENTIAL

Parking is important and the Chinese Embassy's failure

to meet our requirements is irksome. But we have a lot at

stake in

our relations with China, not least over Hong Kong,

and I share the Department's concern about the action which

Mr Hervey proposes to take. I do not believe that the

standard sledgehammer approach is the right one to adopt

with the Chinese. It is not just a question of "simple failure to understand our policy" (as Protocol Department's brief suggests). The Chinese do have genuine difficulties and their record is improving. They will read a great deal

more into a threat to withdraw a member of the Embassy Staff

than is intended.

2.

The Chinese Ambassador has been here for little more

than a month; his No 2 is even newer. We should-therefore

give the new team a reasonable chance to make the desired

improvement before issuing threats. I therefore agree with the Department that we should approach the problem more slowly and cautiously. I am quite prepared to do my bit

by talking to the Chinese Ambassador and his No. 2.

3. I am quite sure that the Secretary of State should be

consulted before we move to threats of withdrawal (if we

have to). I think we should keep the idea of his raising

the parking issue with the Chinese Ambassador himself (para 4(b) of Mr Cooper's minute) in reserve for the time being.

RJT McLaren

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