TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 134

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Mr Davies

SECRET

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Far Eastern Department

FUTURE OF HONG KONG

25/11

86311112

1. We have now received comments from HMA Peking and the Governor of Hong Kong on our contingency options paper. These are contained in the Governor's letter of 8 October, the Ambassador's letter of 9 October and Peking Telegram No 644 of 23 October.

2.

On the paper itself there are no problems. The Governor and the Ambassador are in broad agreement and we will amend the paper accordingly. The differences, as usual, arise on tactics and in particular on how we should work towards the Prime Minister's visit next autumn. If you agree, I should like to have a meeting soon to discuss this. The question is quite urgent because we shall need to submit to Ministers to get at least a provisional line before the LPS's visit in January.

2

3. Mr Friar's minute of 5 November attaches a resumé of the points of difference. Mr Williamson has given some further comments.

4.

My initial views are:

a) Submission of contingency paper to OD : We cannot, as the

Ambassador would like, make this just a summary of the paper without any reference to the tactical problems. That would beg too many questions.

b) Our submission to Ministers must therefore argue out the broad line of tactics over the next 10 months. We would seek Ministerial agreement to the OD paper of which I attach a draft outline.

c) Not surprisingly, the draft is a compromise between the views of the Governor and HMA on such matters as pace of approaches to the Chinese and the substance of what we would expect to get from them. It includes some preparatory work by the LPS (it is in any case inevitable for him to raise the subject) and leaves open the possibility of a farewell visit to China by the Governor making some contribution an important one.

very possibly

d) The possible role of intermediaries or special emissaries

is put into perspective. These are not questions on which we should try to take definite views now. It is not to be ruled out that the Chinese might themselves at some stage want to use an intermediary and we might find ourselves committed to that course.

SECRET

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