HKB 182/4
1. M Seaton, FED 2. M Whiteside, News D
ARRETO, HICD /uñ
PRIME MINISTER'S VISIT TO CHINA AND HONG KONG:
DEFENSIVE LINES
AIRPORT MEMORANDUM OF UNDERSTANDING
Initialled in Peking by Sir Percy Cradock on 30 June.
Published on 4 July: statements in both Houses and No 10
announcement that Prime Minister would visit China "soon" to
sign it.
WAS THE PRIME MINISTER'S VISIT A CONDITION FOR THE AIRPORT
DEAL?
The Prime Minister decided to take a personal initiative to resolve the impasse. In a last effort to reach agreement he sent his personal adviser to Peking and later in response to a Chinese invitation, indicated that because of the importance of the matter he would be willing to go to Peking to sign the Understanding.
Intensifying our consultations with China is part of the essential background to this understanding.
It is right that Heads of Government should sign an understanding of this importance, reaffirming the Joint Declaration as we enter the second half of the transition
period.
(If pressed) The Understanding is for signature by Heads of Government but it does not specify place of signature.
- The Chinese clearly attach importance to the Prime Minister's visit. It no doubt facilitated the Understanding.
ARPATU/1
دی