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4.
HE WAS, HOWEVER, PREPARED TO CONSIDER THE SUGGESTION (WITHOUT COMMITMENT) THAT THE PARAGRAPH SHOULD STAND WITH THE ADDITION ''SUBJECT TO THE UNDERSTANDING THAT REFERENCES TO ''TERRITORY''IN THE AGREEMENT WILL IN NO WAY PREJUDICE
THE POSITION OF EITHER GOVERNMENT WITH REGARD TO THE STATUS
OF HONG KONG''.
5. PROVIDED THAT THE CHINESE..DO NOT, ON REFLECTION, ASK
FOR SOMETHING MORE SUBSTANTIAL, I DO NOT THINK THAT
THIS NEED CAUSE US DIFFICULTY. THE FORMULA WILL APPEAR ONLY
IN AN UNPUBLISHED TEXT AND IN ANY CASE GOES NO FURTHER THAN
NO PREJUDICE. THE ALTERNATIVE, TO OMIT ANY REFERENCE TO THE AGREEMENT, WOULD MEAN LEAVING THE REGIONAL SERVICES WITHOUT
THE BENEFIT OF THE PRACTICAL ARRANGEMENTS SET OUT IN IT. THE FURTHER ALTERNATIVE, OF SPELLING OUT THE ARRANGEMENTS
IN THE AGREEMENT IN THE CMU ON REGIONAL SERVICES, WOULD (A) BE CUMBERSOME AND (B) STILL BRING US UP AGAINST THE SAME
POINT.
GEORGE
FILES
MAED
HK & GD
FED
LEGAL ADVISER
MR CORTAZZI
MISS BROWN
MR STRATTON
[COPIES SENT TO CAD/DOT]
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