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OF PUTTING OUR CASE TO THE CHINESE (WE ARE SENDING SOME QUICK COMMENTS ON THE DRAFT SPEAKING NOTE IN HONG KONG'S SECOND TUR). NEGOTIATING IT WITH THE TREASURY (OR SECURING AGREEMENT THAT WE SHOULD NOT/NOT CLEAR IT WITH THEM) WILL ADD A FURTHER COMPLICATION AND TAKE UP SOME TIME.
5. IN THESE CIRCUMSTANCES I HOPE YOU CAN THINK AGAIN ABOUT THE IDEA OF NAILING DOWN THE PRESENT POSITION IN A CONFIDENTIAL LETTER BEFORE LORD CAITHNESS LEAVES HONG KONG. YOU SHOULD BE IN NO DOUBT OF THE STRENGTH OF FEELING ON THESE ISSUES IN THE TREASURY. MRS BROWN TOLD US THAT ALL/ALL TREASURY MINISTERS HAD CLEARED THE CHIEF SECRETARY'S MINUTE OF 4 MARCH. SHE HAS AGAIN SPOKEN STRONGLY ABOUT HONG KONG'S BUDGET ANNOUNCEMENTS ON THE FISCAL RESERVES, ASKING HOW MINISTERS WOULD HAVE REACTED IF WE HAD BOUNCED THROUGH A DECISION ON STERLING SAFEGUARDS JUST BEFORE THESE FIGURES WERE PUBLISHED. TREASURY OPPOSITION TO HMG'S ACCEPTING A CONTINGENT LIABILITY FOR STERLING SAFEGUARDS HAS HARDENED. THEY COULD SEEK TO RE-OPEN THE QUESTION OF WHO SHOULD PAY FOR COMPENSATION (IN THE PAST IT WAS (IN THEORY AT LEAST) THE FORMERLY DEPENDENT TERRITORY).
6.
WE AGREE THAT THE OBJECTIVE SHOULD BE TO SEND AN OPEN LETTER BEFORE THE HMOCS ASSOCIATION MEETING ON 26 MARCH. BUT (PARA 4
OF HONG KONG TELNO 700) IF BRIEFED PRIVATELY NOW IT WOULD BE VERY MUCH IN HMOCS OFFICERS'
INTEREST TO KEEP THE NEW POSITION CONFIDENTIAL UNTIL THEN. IF THE GOVERNOR'S ADVICE IS THAT IT WOULD BE WRONG TO SEND A CONFIDENTIAL LETTER TO MILLER, WOULD AN ALTERNATIVE OPTION BE FOR THE MINISTER TO WRITE TO SIR D FORD AND FOR THE LATTER TO
BRIEF MILLER ORALLY?
HURD
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