SECRET
:
HUANG
MAN WHO MIGHT DEVELOP INTO A GOOD CONTACT IN THIS CONTEXT. HUA HIMSELF IS ANOTHER POSSIBILITY THOUGH I SHOULD BE INCLINED TO AVOID HIM. SINCE I WOULD BE GOING OVER GROUND TRODDEN BY GU MU THIS SHOULD MINIMISE THE RISK OF BEING REBUFFED IN A WAY THAT DAMAGED OUR CHANCES OF SECURING A SOLUTION.
5. AT THE LEAST WE SHALL HAVE TO INFORM THE FOREIGN MINISTRY OF THE NEED TO PREPARE FOR LORD CARRINGTON'S VISIT IN THIS CONTEXT AND IF THEY WERE TO MENTION HADDON-CAVE'S VISIT ! WOULD NEED TO BE ABLE TO SAY THAT WE WOULD OF COURSE WELCOME
A DIALOGUE.
6. HOWEVER WE PROCEED WE SHALL NOW HAVE TO DO SO EXPLICITLY IN THE CONTEXT OF THE MAJOR QUESTION OF HONG KONG'S FUTURE.
I DO NOT REGRET THIS. GU MU'S REMARK ABOUT HAVING TO FIND A SOLUTION BUT ALSO HAVING TO FACE CHINESE AND WORLD OPINION MUST FORESHADOW SOME CONCESSION ON OUR PART OVER SOVEREIGNTY OVER THE NEW TERRITORIES IF NOT OVER HONG KONG AS A WHOLE. BUT THAT IS SOMETHING WE HAVE EXPECTED FOR SOME TIME. HOW FAR WE SHALL HAVE TO MOVE ON THIS REMAINS TO BE SEEN, BUT I DO NOT EXCLUDE OUR HAVING GRADUALLY TO FIND A BASIS OTHER THAN THE EXISTING TREATIES FOR OUR OCCUPATION OF HONG KONG AT LEAST AFTER 1997.
GU MU'S BROAD APPROACH FORTUNATELY ALLOWS US TO KEEP OUR TACTICS FLEXIBLE AT THIS STAGE AND TO PURSUE THE QUESTION OF MAJOR PROJECTS AND CROSSBORDER DEVELOPMENTS IF THE CHINESE ARE AVERSE
TO AN EARLY DISCUSSION OF LEASES.
7. IS SHOULD BE GRATEFUL FOR YOUR VIEWS AND FOR FCO INSTRUCTIONS.
CRADOCK
FILES
HD/HK & GD
HD/FED
PS
PS/LPS
PS/PUS
SIR D MAITLAND
CHIEF CLERK
MR DONALD
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Page 165Page 166
Original at: HICK 02616
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GPS 300
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