CONFIDENTIAL

(vi) Visit to Peking

(a) We must make clear to the Chinese that the Committee's views

are not those of HMG. Chinese sensitivities will need to be an

important part of the Secretary of State's first briefing rounds. Sir A Donald could also go over the ground again when he meets the Committee informally during his mid-tour leave in March. Chinese sensitivity on the sovereignty issue is likely to be heightened by

the fact that the second draft of the Basic Law will already have

been endorsed by the Standing Committee of the Chinese National

People's Congress and published by the time the Committee visits

Hong Kong and Peking.

Ariano

A R Paul

CONFIDENTIAL

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