E HONG KONG.

TUE 24 AUG 92 11:10

PG.83

SECRET

*

were

to

proceed

implementation

to tell us at our probing their ideas on

this restriction, of

we are obligated

to

But quite frankly,

respond. But before we could do so we need to think through of doing so. what to us is the least objectionable way We in CAB are beginning to give further thoughts to this, and will take into account your suggestions. this is а tricky area and conclusions in time for Round 10 or 11. HKD will also want to take time to mull

clearance and possibly seek ministerial ideas to the Chinese.)

I thus

continue to

I don't see us reaching any (I would imagine that over our conclusions, before putting any

believe that

for

the

time being we should

sit tight on our position on the 20% restriction. At the same time

thoughts to your we shall give further suggestions and consult the great and the good when they are all in conclave assembled. We shall let you have our views once this is done.

You Salink

(Peter Lai)

Acting Secretary for Constitutional Affairs

c.c. P.F. Ricketts, Esq., HKD, FCO

(By classified fax)

SECRET

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