TNAG-0850-FCO40-1060-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 177

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circles in Hong Kong, knowledge of the specific solution we

have in mind, and the fact that approaches have already been

made to the Chinese,,has been restricted to a very small circle

of those who need to know. It is essential to maintain secrecy

at this stage. The subject is highly sensitive, and a premature

disclosure of our intentions could cause damaging speculation

in Hong Kong. It would certainly puzzle the Chinese.

4. In these circumstances Mr Parry's Question is best side-

stepped. I have consulted the Governor, who agrees with the

and the Embassy in Peking FED/also agree.

form of words proposed.

In Sunderen

RJT McLaren

25 July 1979

Hong Kong and General Department

сс

Mr Rushford, Legal Advisers

Mr Samuel, FED

CONFIDENTIAL

hikmatin

25 2.6y

July