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our terminology might appear designed to seek public support for lengthening our tenure by implying that property rights would end with it. But this may seem far- fetched and Percy Cradock might like to comment.
12.
We will be meeting you and Richard Samuel at the end of the month, and he will have had the benefit of Percy Cradock's advice. By then we will probably have had, by one channel or another, an indication of more considered Chinese reactions. So it could be a good time to take stock. But I think immediately two things have to be done:-
13.
a)
b)
You should take the best advice possible on a phrase alternative to so long as Her Majesty may administer
(though saying much the same thing) so that the phrase to which Deng objected will not
recur.
I must reconsider what reaction here would be to a statement on Hong Kong's future prospects along the lines made by Deng. It is necessary firstly because it seems likely that this formulation will become known in some way and we must be ready with the right response; secondly because if we conclude its affect would not be seriously adverse, it might help the lease exercise to suggest it was made simultaneously. But my present strong instinct is to avoid precipitating formal public endorsement of such a statement for several years to come.
The circumstances in which Deng, Huang and Liao spoke about the leases should be understood. While we did give notice through NCNA that we would raise the question, Deng was confronted with our proposition more or less out of the blue. He had obviously been briefed that I would raise the questions of confidence and investment, but he had not realised this related to an immediate problem ov er
leases rather than to long term Chinese intentions. We had hoped to go over the ground with Liao first so that Deng could have been primed in advance, but this was not possible. Moreover we put it to Deng, and subsequently to Huang Hua, as something we were informing them about because we did not wish to be misunderstood, and as something which required no action on their part, and which they could be assured would not contradict their position. But we chose
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