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4.

Chinese understanding and support for PADS is in my view

attainable. But this will require patient cultivation of the Chinese experts by the Hong Kong team at their January

meeting, and at any subsequent meeting, should that be necessary. The key, however, will be to convince the Chinese leadership particularly Li Peng of the project. And that can only be achieved through top level political contacts, not through the presence of an attache in Peking.

5.

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of the viability

I have discussed this in general terms with Mr Davies (FED) who agrees.

ARPANO

A R Paul

BAGAEJ/2

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I agree. Anda Rum Алибит

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