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6.

Officials in the MOD have not yet been able to obtain views from their Ministers (they are doing so now). officials are

broadly content, save that they do not agree with the Governor's

proposal that the briefing should stress, inter alia, the

enormous pressures on British forces elsewhere particularly the former Yugoslavia. They believe that this gives the impression that the decision was made hurriedly as a result of manpower requirements. They would prefer this argument to be used in a

low key manner, and preferably defensively should the Chinese ask why the withdrawals cannot be delayed for a few months.

MOD are strongly opposed to this line being used in public since it would also give the impression that 'Options for Change' decisions were flawed. However, the argument that the troops

are needed elsewhere might well be understood by many on the Chinese side, and is certainly likely to be more acceptable to them than any argument that the withdrawals are necessary because of difficulties in obtaining funding from LegCo.

D

The

7. The Governor also proposes that Mr Goodlad might call in the Chinese Embassy in parallel to the action by UKRep JLG. This would underline that this decision is a UK rather than a Hong

Kong matter. The Governor also suggests that this would be the

right time to establish contacts between British and Chinese

Military authorities to discuss the practical details of the transfer of defence responsibilities. This proposal will be welcome to the Chinese and should help to soften their reaction.

Than

JC Morris

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