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12. On balance, and subject to Percy Cradock's and your views, I favour accepting in principle now and then choosing the actual timing with some care. In recommending acceptance in principle, I am impressed by the favourable coincidence of the present powerful positions of Liao Ch'eng-chih and Teng Hsiao-peng. It has been unusual to have anyone as interested in, and as favourable to, Hong Kong as Liao, or someone as willing to take difficult decisions as Teng, and as I understand it they work closely together. If we are successfully to make the first step over the future of Hong Kong, which we are agreed should be over the crown leases, it would be as well to do it while these two men are still
at the peak of power. This would mean rather soon er than I had previously envisaged. I therefore do not think it prudent that I should offend one of them by evading an invitation so persistenly presented, but this is much more for Percy than myself to comment
on.
13. In the light of Percy's comments, which I hope will be by telegram, perhaps you could telegraph to me whether I should accept in principle or alternatively take evasive action. I should like to dispose of this before Christmas if possible.
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cc:
P Cradock Esq CMG PEKING
R C Samuel Esq
Far Eastern Department FCO
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