TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 4

CONFIDENTIAL

123

GRS 150

MEDIATE

CYPHER CAT A

FM PEKING 188300Z

CONFIDENTIAL

DESKBY FCO 1809002

TO IMMEDIATE FCO TELNO 571 OF 18.9.78

INFO IMMEDIATE HONG KONG.

HONG KONG TELNOS 1102, 1107 AND 1109.

RELLIVES

7 NO. 51

358 10973

DAK OFFICES

PA

R

Action Teken

Y

INDEX

No

1a 1 AM AWARE THAT THERE ARE STRONG LOCAL SENSITIVITIES IN

HONG KONG ON THIS SORT OF ISSUE AND THE CHINESE MIGHT BE TRYING TO PRISE OPEN THE DOOR TO OFFICIAL REPRESENTATION. HOWEVER,"

I BELIEVE THAT SINO-BRITISH RELATIONS HAVE DEVELOPED TO THE POINT

WHERE WE SHOULD NOT SNUB THE CHINESE UNLESS OUR VITAL INTERESTS

DEPEND ON DOING SO. IN THE PRESENT CASE, I THINK WE CAN ASSUME THAT THE CHINESE HAVE MADE THEIR CALCULATIONS ABOUT LOCAL REACTIONS

AND HAVE CONCLUDED THAT THE BOAT WILL NOT BE ROCKED IN A WAY WHICH

BOTH SIDES WOULD CONSIDER UNDESIRABLE.

2. I THINK WE SHOULD REGARD THE CHINESE INITIATIVE AS A POSITIVE

STEP DESIGNED TO MARK THE PATENTLY IMPROVED STATE OF SINO-BRITISH

RELATIONS, AND RESPOND POSITIVELY, 1 AGREE WITH HONG KONG TELMO. 1109 TO YOU THAT THE GOVERNOR WHOULD ACCEPT ON THE TERMS PROPOSED.

DAVIES

FILES

HK & GD

FED

PUSD

NEWS D

OID

PS

PS/LORD GORONWY ROBERTS

PS/PUS

MR STRATTON

MR MURRAY

:

CONFIDENTIAL