1991-10-25 17:18 SECURITY BRANCH

9

FINANCIAL AND STAFFING IMPLICATIONS

852 868 5074

F.16

15.

The proposal has no financial or staffing

implications. Any additional workload arising from the

conduct of VAA negotiations will be absorbed within

existing resources.

PUBLIC REACTION

16.

This is a potentially semmitive issue.

Successful negotiations are likely to be well received,

particularly where they involve countries with close

links to Hong Kong. Conversely, there could be an

adverse effect on confidence i we failed to reach

agreement with the Chinese on the principle of VAA's,

or were linaniccoeoful

negotiatIGAS.

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PUBLICITY

17.

There will be no publicity, and we will not

issue a Legislative Council Brief pending consultat on

with the Chinese, However, we will prepare a prens

line to answer media enquiries.

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