SECRET
UK EYES A
(c) There could be a large gap which there is little hope
of bridging during the visit.
If, unhappily, we are in the last position it will probably
be better to break off the talks at a fairly early stage before
This could be done, more in sorrow
relations become embittered.
than anger, on the basis that the Minister is disappointed that
Hong Kong does not feel able to respond to HMG's reasonable
demands and that he has no alternative but to go back and
report to his colleagues. If, on the other hand, there seems
to be the makings of an agreement on a graduated basis, which
is outside the terms of our mandate but might well be acceptable
in London, the Minister could indicate more hopefully that, having
heard the Hong Kong views, he must now return and discuss the
matter further with his caleagues.
PR Line
25. The announcement of the Minister's visit has intentionally
been couched in very general terms. It is suggested that he
should not make any statement to the Press on arrival in Hong
Kong; but there will probably be a Press Conference at the end
of the visit. If the negotiations have been successful this can
be used to announce the conclusion of a new agreement.
If not,
the line will have to be that while in Hong Kong the Minister
has had preliminary discussions on a new defence agreement but
that no agreement has yet been concluded. The point could be made
that the existing agreement does not expires until next spring.
The two sides have had a useful exchange of views; the Minister
is now going back to report to his colleagues in London; and
there will probably be further talks in due course. The aim
should be to play down any hint of breakdown or crisis. The
talks were only one reason for the Ministers coming to Hong Kong:
he has also been visiting units in the garrison.
SECRET
-10-
UK EYES A
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