CONFIDENTIAL

If we were to go down the route you suggest, we

think that there is a very strong possibility that we

would face a long and ultimately unsuccessful wrangle

with the Chinese. We therefore conclude that we should go on exploring other options which do not involve the military estate, while keeping in mind the general advantages of a package deal on the lines which you

suggest. There continues to be a strong school of thought here that Victoria House would be the right

residence for the British Consul-General from 1997.

But

I know that you see serious problems with that. If there were any other possibilities one level below that,

hitherto unidentified, we would be very interested to

know.

CO Hum

とっ

ever,

секс

cc: A C Galsworthy Esq, CMG, UKRep JLG Hong Kong

Sir R McLaren KCMG, Peking (with refs)

SP Day Esq, CMG, BTC Hong Kong (with refs)

M Bertram Esq, OED, FCO

CONFIDENTIAL

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