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Call on the Secretary of State by Mr Robert Adley MP

The Secretary of State saw Mr Adley at the House of Commons last night. He has given me the following account.

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Mr Adley said that Ambassador Ma, to whom he had been speaking, was greatly concerned by Mrs Thatcher's forthcoming visit to Taiwan and the forthcoming change in the title of the Taiwan office in London. But Mr Adley recognised that there was little that we could do about this.

Ambassador Ma had also been much worried over the McConnell Bill.

Mr Adley wondered whether we could find some way to repudiate it: he would be willing to put down a PQ if that would be helpful. The Secretary of State said that we could not do this: indeed, in some ways the McConnell Bill was useful. However, we might find an opportunity to show to the Chinese that the Bill was not inspired by us and he would be willing to consider how this might be done. I think that it would be useful to let the Secretary of State have advice on this: we could certainly engineer an opportunity through a PQ if that is the sensible thing to do.

Mr Adley also said that Ambassador Ma thought that we might be losing sight of the advantages of the 1984 agreement on Hong Kong. The Secretary of State said that Tiananmen Square had obviously had a major impact. He also told Mr Adley in general terms of the new difficulties we were facing on airport financing.

Finally, the Secretary of State said that it would be helpful if Mr Adley could tell the Chinese Ambassador that the Embassy should be relaxed in their dealings with us in the Foreign Office. They did not need to feel that they had to keep at arm's length from us. He was sure that Sir J Coles and senior officials would be willing to see Ambassador Ma regularly. Mr Adley said that Ambassador Ma was indeed more stiff and cautious than his predecessor: the staff troubles at the

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