CONFIDENTIAL

loyalty to the HKG up to 30 June 1997 and to the government of the Hong Kong Speicial Administrative Region thereafter.

8. We are ensuring that this statement is given a wide

distribution to those officers who have an interest in it.

We should be grateful to receive any written comments on the

proposal outlined above by 24 April. We then envisage that a small team of officials should visit Hong Kong in the week beginning 4 May in order to discuss points arising with

representatives of the Association of members of HMOCs in

Hong Kong. Thereafter we hope to announce decisions on the details of the scheme early in June.

REGACH/4

CONFIDENTIAL

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