X
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Mr Downs
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It might be as well
for is Paul to permate the Mo) wshow her their popres responce (x) befre issues. гарак (х)
between the
FROM:
A R Paul
l
Hong Kong Department
2)
DATE:
Exchange
7 June 1990
The IG or Corlo
Chanclrized h
་
high
have wen
level
CC:
Mr McLaren
o vituperation
Mr Burns
Mr Stme
(Tonite Mr McLaren's
HONG KONG: ROYAL NAVAL PRESENCE AFLOAT
Suggestion, with which I
1.
You asked me where matters now stood on this. age.
to someme in
Should I
Speak
Mon?
2. We have spoken to the relevant part of the Hong Kong Government. They have just finalised their response to the MOD, which they expect to issue in a few days. It will explain why Hong Kong cannot accept the MOD's proposal for dealing with the financing problem. But it will put forward alternative proposals designed to be helpful. It will, as I understand it, focus on Hong Kong paying more initially, and getting a larger share of the proceeds of the sale of stores
later.
17
3.
It is difficult to judge whether this is likely to resolve this matter. But we shall be receiving a copy of
the Hong Kong Government's response. At this point, I fear we are going to have to take a rather closer interest in the negotiations than hitherto. This could have the makings of a major row. But with careful handling, this should be
avoidable.
ARPac
A R Paul
MOPACA/1
CONFIDENTIAL