In the

event the Foreign Secretary had not visited Hong

Kong and now had too much on his plate to focus

In

on the subject until H.E.'s visit in July.

the meantime Mr. Cortazzi saw advantage in putting

an agreed paper to S of S taking full account

of the Hong Kong point of view.

H.E. said

that the paper should bring out the very large overlap of interest and identity of view between

'Hong Kong and U.K.

6.

It was agreed that CS would go to

London with a senior official on the finance

side to work on the draft in the FCO in the week

beginning 7 June.

7.

Mr. Cortazzi said that Lord Gor onwy-

Roberts had asked him to say that the planning

paper represented the minimum that he could get

away with in terms of social progress.

Lord

Goronwy Roberts had also been dissatisfied with the budget which had not been consistent with H.E.'s

letter to him. H.E. replied that the budget

gave effect to all the plans he had outlined in

his personal letter to Lord Goronwy-Roberts

before the budget had been announced.

8.

Mr. Cortazzi said that the FCO

had not been able to trace the withdrawal of the requirement for inspection of accounts laid down

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