5. On the second of the first-order points we identified, Percy Cradock has removed the suggestion on page 19 that the policy he advocates is the only one which would allow Britain to leave the stage with a clear conscience. This renders the final passage marginally less offensive.

6. Of the second order issues, Percy Cradock has accepted one factual correction on page 14 and shaded the judgements on page 15 to make clear that these reflect his personal assessment. This reduces the risk that they could be seen as expressing a more widely held view within government circles.

7. As a result of these changes, the text is somewhat improved. But as we expected, Percy Cradock has refused to water down his contention that we have moved away from a policy of cooperation and that we are failing to put Hong Kong's interests (as he defines them) first. He has, of course, already expressed these views vehemently in public (most recently in evidence to the Foreign Affairs Select Committee and in an article for the Hong Kong press). They are thus already on the public record, and in stronger terms than those now used in his manuscript. Our judgement, particularly in the light of the statements he has already made elsewhere, is that the book as now amended is unlikely to damage any future negotiations with the Chinese Government. From the FCO's point of view, we would therefore be content that the Government should make no objection to publication in its revised form.

8.

Percy Cradock has asked to be informed of your decision by the end of this week if at all possible.

Yans

Land

David Gillmore

CONFIDENTIAL

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