TNAG-1053-FCO40-1303-China-and-Hong-Kong-Working-Group-1981 — Page 38

CODE 18-77

SS 8/78

1.

Reference

Need to a

Obvienoty

an

ultimate legal publem

over lease that fit necesarily China's problers

But not a time for initiatives to Oblige

them to take a

legal stand. Obviiristy

encrugge any practical moves

enhance confidence

k

likely

more

likely actions than wach fun China. Therefore

L

heep in clox touch but not force pare [ Land leases - keepy under close

re

Line with businessmen

•

Shes need for confidentiality. Not weaken confritunce. Applies to speculatin in Pficial correspondence with feims, causiderak I finraney policy. I line with businessmen.