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CHEN ARGUED THAT OFF-SITE ISSUES WERE THE MOST IMPORTANT: IN FACT ON-SITE INCIDENTS DID NOT REALLY CONCERN HONG KONG, BUT FOLLOWING OUR REPRESENTATIONS THE NUCLEAR LEADING GROUP OFFICE HAD PERSUADED GUANGDONG TO AGREE TO PROVIDE HONG KONG WITH INFORMATION ON THESE TOO. (HE IMPLIED THAT GUANGDONG WERE STILL NOT VERY HAPPY ABOUT HAVING TO DO THIS.) AFTER A YEAR OF DISCUSSIONS WE HAD BASICALLY TIED UP AGREEMENT ON ALL SEVEN MAIN OFF-SITE QUESTIONS. GUANGDONG'S IDEA WAS TO WRAP THIS UP WITH AGREEMENT ON CONFIDENTIALITY AND THEN FOR HIGH-LEVEL HONG KONG AND GUANGDONG DELEGATIONS TO MEET TO CONFIRM (BUT NOT NECESSARILY SIGN) THE AGREEMENT ON OFF-SITE ISSUES: THIS COULD QUICKLY BE FOLLOWED BY EXPERT TALKS ON ON-SITE ISSUES AND THEN SIGNATURE OF A PACKAGE

AGREEMENT.

5. WE THANKED CHEN FOR HIS ACCOUNT OF GUANGDONG'S THINKING BUT EXPLAINED THAT IT WAS NOT A PRACTICAL WAY OF TAKING THINGS FORWARD. SINCE THE 11 JUNE MEETING AND SINCE THE GUANGDONG LETTER OF 14 JUNE MATTERS HAD BEEN CAREFULLY CONSIDERED AT THE TOP LEVELS OF THE HONG KONG GOVERNMENT AND WE WERE NOW MAKING A CONSTRUCTIVE PROPOSAL ON FCO INSTRUCTIONS. WE URGED THE CHINESE AUTHORITIES TO RECOGNISE

ITS ADVANTAGES AND TO GIVE A POSITIVE RESPONSE.

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THE USUAL REPETITIOUS DISCUSSION ENSUED. AT ONE STAGE CHEN INDICATED THAT THE GUANGDONG AUTHORITIES WERE JEALOUS OF THEIR FIEF AND WOULD NOT TAKE KINDLY TO TOO MUCH PRESSURE FROM PEKING: IT WOULD BE GUANGDONG AFTER ALL WHO WOULD BE HONG KONG'S LIAISON. SAID ON A PERSONAL BASIS THAT IT SEEMED AS IF THE GUANGDONG AUTHORITIES WERE LOOKING ON THIS AS SOME KIND OF DIPLOMATIC NEGOTIATION IN WHICH USE OF PRECONDITIONS COULD PUT PRESSURE ON THE OTHER SIDE: WE URGED THEM INSTEAD TO SEE IT AS A MATTER OF PURE CO-OPERATION AND TO TAKE A PROBLEM-SOLVING APPROACH. WE STRESSED THAT WE BELIEVED THAT IT MIGHT BE EASIER TO SOLVE THE CONFIDENTIALITY QUESTION WHEN THE HONG KONG AUTHORITIES COULD SEE THE OVERALL PACKAGE OF CO-OPERATION WHICH WOULD BE THE CONTEXT IN WHICH HONG KONG OPINION WOULD SEE IT: IN ANY CASE IT SURELY COULD NOT THEN BE MORE DIFFICULT. AFTER ALL WE ASSUMED THAT THE CONFIDENTIALITY QUESTION WOULD ARISE IN THE ON-SITE CONTEXT AS WELL AS THE OFF-SITE ONE (CHEN OF COURSE CONFIRMED THIS). WE FIRMLY DECLINED TO BE DRAWN ON WHAT EXTRA FLEXIBILITY HONG KONG MIGHT THEN BE ABLE TO SHOW.

CHEN EVENTUALLY SAID THAT HE UNDERSTOOD OUR ARGUMENT AND WOULD PUT IT TO THE GUANGDONG AUTHORITIES FOR FURTHER

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