CONFIDENTIAL

4.

In the course of these revisions, the draft has grown considerably in length. With annexes, there is a very great deal

of material for the Prime Minister to read. But we have been guided

by Sir P Cradock in this.

5. You suggested that it was also for consideration whether we should send separate notes, for example on the progress made in the

Basic Law. The draft note is comprehensive in scope and the

annexes provide further detailed amplification. I see no need for

further material.

6.

letter.

I will be submitting separately a covering Private Secretary

ARPac

A R Paul

1. As Mr Paul says, I have discussed the form, content and tone of the draft paper with Sir Percy Cradock. He has also provided helpful comments on two earlier versions of the text. The draft reflects his advice that we should set the problems in the context of a positive picture of Hong Kong as a success story. From the Governor's point of view, it is, in consequence, a little up-beat, but we have been able to incorporate most of his detailed points.

2.

It would be helpful to know whether Ministers are content with the draft note as it now stands. We would aim to submit a final version with a covering Private Secretary letter to reach No 10 by the weekend.

3. Sir P Cradock plans to accompany the Governor for his call on the Prime Minister. He also intends to send her a briefing note of his

to supplement anything which Mr Powell may provide.

ovide

In anden

15 February 1989

CONFIDENTIAL

R JT McLaren

/Cc:

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