CONFIDENTIAL

000111 MDLOAN 54

5.

PARA 10 OF TUR: NOT TO RAISE WITH THE QUESTION OF COMPETING

REVIEW.

DRAFT MODEL AGREEMENT

WE AGREE THAT IT WOULD ON BALANCE BE BETTER CHINESE AT THIS STAGE THE DIFFICULT REQUESTS. BUT WE NEED TO KEEP THIS UNDER

6. WE HAVE CONSULTED THE HOME OFFICE ON THE QUERIES RAISED IN SALKELD'S LETTER TO WOOD OF 24 FEBRUARY AND ARE FAXING REPLIES TO SALKELD.

DRAFT PAPER FOR CHINESE SIDE

7.

THE REVISED DRAFT PAPER FOR THE CHINESE SIDE CONTAINS A NUMBER OF HELPFUL IMPROVEMENTS. ON A MINOR DRAFTING POINT, YOU WILL NEED TO ENSURE THAT REFERENCES TO THE BRITISH OR CHINESE QUOTE SIDE UNQUOTE ARE CONSISTENTLY SINGULAR OR PLURAL THROUGHOUT. WE ALSO SUGGEST THE FOLLOWING AMENDMENTS:

8.

THEY MAY NOT

PARA 3: REPLACE THE FIRST SENTENCE WITH QUOTE THE TWO ATTACHED SETS OF OUTLINE PROCEDURES ARE TENTATIVE. COVER ALL QUESTIONS THAT MAY ARISE UNQUOTE.

9.

PARA 5: REPLACE THE FIRST TWO SENTENCES WITH QUOTE THE BRITISH SIDE HAVE GIVEN FURTHER CONSIDERATION TO WHAT FORMULA MIGHT BE USED IF A NEGOTIATING PARTNER REQUESTS THE INCLUSION OF A PROVISION IN THE AGREEMENT GRANTING IT THE RIGHT TO REFUSE TO SURRENDER ITS OWN NATIONALS. WE SUGGEST THAT THE FOLLOWING FORMULA SHOULD BE USED UNQUOTE.

10.

PARA 6: NINTH LINE: DELETE QUOTE INTERESTS IN UNQUOTE.

11.

PARA 9(B): REPLACE THE WHOLE PARA WITH: QUOTE THE TWO SIDES ARE AGREED THAT THE DECISION TO ISSUE AN INSTRUCTION SHOULD BE TAKEN AT A SUITABLY HIGH LEVEL WITHIN THE CPG. THE PERSON CONCERNED SHOULD BE IN A POSITION TO JUDGE WHETHER A CASE WOULD BE LIKELY TO HARM THE PRC'S DEFENCE OR FOREIGN AFFAIRS AND, AT THE SAME TIME, TO APPRECIATE WHAT THE EFFECT MIGHT BE OF HIS DECISION ON HONG KONG. IN THE ATTACHED OUTLINE PROCEDURES WE HAVE SUGGESTED THAT THE PERSON CONCERNED SHOULD BE THE MINISTER OF FOREIGN AFFAIRS, OR, IN HIS ABSENCE, HIS AUTHORISED DEPUTY UNQUOTE.

12. IT WOULD INCIDENTALLY BE USEFUL IF FUTURE COMMENTS COULD BE MADE WITH DIRECT REFERENCE TO THE DRAFT PAPER FOR THE CHINESE AND ITS ANNEXES. AT PRESENT DISCUSSION IS SPREAD OVER AT LEAST SEVEN TELEGRAMS.

HOWE

YYYY

PAGE

2

CONFIDENTIAL

Share This Page