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12 FEBRUARY AND WENT OVER MUCH THE SAME GROUND. HE TOO STRESSED THE IMPORTANCE OF THE STRATEGIC ISSUES AT STAKE FOR HMG AND OUR CONTINUING RESPONSIBILITIES FOR HONG KONG. HE REFERRED TO THE PRESS REPORTS OF BELLIGERENT REMARKS ATTRIBUTED TO DENG XIAOPING - A REMINDER OF THE NEED TO REMAIN VIGILANT. HE POINTED OUT THAT THE LARGE NUMBER OF INCURSIONS BY CHINESE VESSELS INTO HONG KONG WATERS LAST YEAR UNDERLINED THE NEED FOR THE WHITE ENSIGN TO REMAIN VISIBLE IN HONG KONG. HE EXPRESSED THE STRONG HOPE THAT AGREEMENT COULD BE REACHED QUICKLY. MR HAMILTON UNDERTOOK TO CONSULT HIS OFFICIALS AND REVERT IN DUE COURSE.
6.
LORD CAITHNESS HAS SUBSEQUENTLY FOLLOWED UP THIS CONVERSATION WITH A LETTER, STRESSING THAT THE MILITARY AND POLITICAL CONSIDERATIONS INVOLVED IN THIS ISSUE ARE TOO GREAT TO BE SUBORDINATED TO ARGUMENTS ABOUT RELATIVELY SMALL SUMS OF
HE WARNED THAT IF THE PRESENT DEADLOCK PERSISTED, MINISTERIAL DISCUSSION OF THE WIDER ISSUES WOULD BE NEEDED BEFORE ANY DECISIONS WERE TAKEN WHICH WOULD HAVE A PROFOUND IMPACT ON HONG KONG AND ON BRITISH INTERESTS THERE.
6.
FOR THE TIME BEING, THEREFORE, THE BALL IS IN THE MOD COURT. IN THE LIGHT OF THEIR RESPONSE, WE SHALL NEED TO CONSIDER WHETHER THERE IS ANY FURTHER ROOM FOR MANOEUVRE. I THINK THAT THE SECRETARY OF STATE WOULD BE PREPARED TO DISCUSS THIS BILATERALLY WITH MR KING, ALTHOUGH BEFORE DOING SO HE WOULD NO DOUBT NEED TO BE REASSURED THAT WE HAD EXHAUSTED ALL POSSIBILITIES OF COMPROMISE BEFORE BRINGING HIM INTO BATTLE.
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