C.

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hard-line signal in this way will be shelved. If the reports are borne out, I propose that News Department should use the following line, which has been proposed by the Governor:

It is not our practice to comment on the content of confidential diplomatic exchanges with other governments.

Following Mrs Thatcher's meeting with Deng Xiaoping in September 1982 there were two years of negotiations which resulted in the Joint Declaration, a binding international treaty. This not only sets out the policy which will be applied in the Hong Kong Special Administrative Region from 1 July 1997. It also records clearly the agreement of the Chinese and British Governments that Britain is responsible for the administration of Hong Kong up to 30 June 1997.

I submit a draft telegram to the Governor confirming we are happy with the press line he has proposed.

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If the Chinese do take this step at the 16 July meeting, we should alert Lady Thatcher's office, and let them have our press line.

Lichell

PF Ricketts

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hum15.7/MIN/NJH

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