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a presentation that made it clear that we sought only their acquiescence or non-objection, rather than their formal concurrence. While I am sure this approach was right, when combined with the lack of notice it did mean that too much should not be read into Deng's pretty cryptic acquiescence nor into Liao's subsequent friendly optimism. But I think it likely that they expect this to be a matter for further discussion of some sort.
14. Meanwhile in replying to any low level comments about land leases I suggest we blandly take the line that Deng defined the Chinese position in a very helpful way, and that we can be trusted to handle this short term measure in a way consistent with his comments. he said, the important thing was firstly not to contradict the Chinese long term position, and secondly to maintain investment. We entirely agree and will act accordingly.
15. If some objection is raised formally at a high level we will have to reconsider.
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16. We still have to consider problem Nos 1 and 2 and whether and how to obtain a firmer and clearer statement from the Chinese about the leases because I doubt if Ministers would be prepared to recommend an Order-in- Council without something more explicit. If Liao Chengzhi's rather vague reference to the possibility of a meeting in Hong Kong materialised, this would be a good opportunity to go over the ground. If not we will have to consider other channels.
17.
I am sending copies of this letter to Percy Cradock and Richard Samuel.
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