RESTRICTED
036523
MDHOAN 5090
(A) TO SAY NOTHING FURTHER PUBLICITY.
WE RISK, HOWEVER,
APPEARING TO RETREAT UNDER CHINESE PRESSURE WITH ALL THE ATTENDANT RISKS FOR PUBLIC OPINION IN HONG KONG.
(B) TO MAKE A FULLER STATEMENT ALONG SIMILAR LINES AT THE FCO
1230 PRESS CONFERENCE ON 10 OCTOBER.
COMBATIVE.
THIS SHOULD BE FIRM BUT NOT
POSITION
THE ADVANTAGES WOULD BE
THE AIM WOULD BE TO RECORD CLEARLY OUR
BUT PUT AN END TO THE PUBLIC EXCHANGE.
TO MAKE CLEAR TO THE CHINESE THAT THEY CANNOT CONTINUE TO AIR OUR DIFFERENCES PUBLICLY WITHOUT SOME REPLY AND TO REASSURE HONG KONG PEOPLE THAT WE ARE NOT WEAKENING UNDER THE CHINESE GOVERNMENT'S
SUSTAINED ATTACKS. THE DISADVANTAGE MIGHT BE TO RISK RAISING THE
PROFILE OF A DIFFERENCE OF VIEW WHICH IS IN FACT ALREADY WELL
KNOWN AND WHICH SINCE JLG WE HAVE BEEN TRYING TO PUT BEHIND US. 4. WE ALSO NEED TO CONSIDER THE LEVEL OF ANY RESPONSE.
IT COULD BE BY QUOTE AN FCO SPOKESMAN UNQUOTE OR BY MR MAUDE.
OUR INITIAL
VIEW IS THAT, UNLESS KE'S REMARKS CONTAIN SOMETHING SUBSTANTIAL AND NEW, A MINISTRERIAL RESPONSE
MAY BE SEEN AS AN ESCALATION TO WHICH THE CHINESE
WILL FEEL BOUND TO REACT.
5. GRATEFUL FOR YOUR VIEWS AND THOSE OF PEKING BY DESKBY
1008OOZ.
MAJOR
YYYY
ΜΑΙΝ
59
DISTRIBUTION
62
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH (FE)
PUSD
NEWS D
PS/MR MAUDE
PS/LORD BRABAZON
MR GILLMORE
MR MCLAREN MR MOSS
ADDITIONAL
3
PAGE 2 RESTRICTED
MR EDWARDS LEGAL ADV
MR WHOMERSLEY LEGAL ADV
MR FIFOOT HKD
NNNN