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3. On substance, oral advice and ad hoc minuting, both initiative and responsive, will continue to be a major part of RAD's input to your Department's work. The following broad topics of interest to your Department will receive priority for comment and analysis on an initiative basis by Far Eastern Section between now and the end of

October:

4.

a)

Chinese policy towards Hong Kong (general rather than

technical aspects);

b) Chinese views on Hong Kong's future autonomy;

c)

Indications of Chinese views on Hong Kong issues

affected by the adoption of the Basic Law.

As to major items of responsive work, Far Eastern Section has

agreed to prepare the following regular reports or studies on individual subjects (A, B or C indicates the level of priority).

Subject

Name of research officer Priority

a) Possible Chinese counter-

measures against the British

Nationality Package

b)

Lessons for future policy

derived from an analysis of

current difficulties in

K Walker

K Walker

negotiations with China

6.

On procedures the following has been agreed:

(i)

Hong Kong

A

B

Department's objectives. In preparing for the next TMR, your Department will consult RAD about its draft objectives (as provided in the PUS' Circular 120/90).

CONFIDENTIAL

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