CONFIDENTIAL

e a careful press line explaining why the decision has been taken, in view of the previous refusal of the Prime Minister and Foreign Secretary to meet the Dalai Lama. The media will no doubt have another field day about No 10 over-ruling. the FCO.

6. We shall also need to be prepared for Chinese protests. They remain very sensitive on this issue. The Chinese Ambassador remarked to a member of FED this week that he hoped press reports that the Prime Minister would over-rule FCO advice about contacts with the Dalai Lama were untrue. We have alerted Sir R McLaren to the proposed visit and to our likely recommendation. He has not demurred.

7. Hong Kong Department consider that a meeting between the Prime Minister and the Dalai Lama should have no unmanageable impact on Chinese propensity to do business with us over Hong Kong.

8.

Protocol Department know of only one other request for an FCO sponsored call during the period in question, for the Prime Minister of Finland on 2 December.

H LI Davies

This is as difficult as ever since the Chinese are bound to gel-angry, particularly in view of the Dalai Lama's more

open pursuit of Tibetan independence, the the Bulle' states.

Bul-2 agree that the time has come to defure the issue domestically. The issue will not go away and a meeting along the lines proposed will not be but of time with

idaing

- or entirely unexpected by

what others are

Peking.

HD LABM

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CONFIDENTIAL,

In mew of the forthcoming wish to and from Свина, чаршавоий родния

I a face also with the propored tacties.

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