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annoyed the Chinese. But she had to make our position of principle clear: you do not enter negotiations by conceding

your strongest point. Similarly, the Chinese insisted on responding with their position of principle.

ExCo versus FCO views

4. You explained that there were differences through the

negotiations, with ExCo taking a harder line. But these

were always thrashed out. You firmly refuted the view that

HMG had not wanted to continue to administer Hong Kong; had

relinquished Hong Kong for (unspecified) benefits to its bilateral relations with China; was beginning the

negotiations on the basis that continued British administration was impossible.

You declined to comment on

exchanges at a private lunch between Alan Donald,

Lord Bramall and the Chinese Ambassador in which Mr Donald

supposedly said that Mrs Thatcher would eventually "come

round" to the end of British administration. You said that

such an exchange would certainly have had no influence on the outcome of the negotiations.

Second phase of negotiations

5. You declined to comment on the content of individual

messages from the Prime Minister to Zhao Ziyang but

confirmed that they had served to unblock negotiations at

difficult times. Mr Roberti asked whether the list of ten

points handed to the Hong Kong Federation of Students when they visited China in July 1983 were already familiar to us.

You said that they were certainly not a new revelation.

Asked about Sir Edward Youde's participation in the

negotiations, you said that he spoke on occasions but of

course was responsible for a large input on the British

side. You added that one of the aims of the negotiations

throughout was to educate the Chinese on the realities of

MUKAMB/2

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