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with FCO Telegram Numbers 482 and 483 which referred to the Ministerial

decision, Mr Blaker's discussion with Mr Raison and provided the

Governor with briefing for his next meeting with UMELCO on the Nationality

Bill.

5. The Governor has now sent a report on the meeting with UMELCO

Hong Kong Telegram Number 532. It is clear from this that he took a

robust line with the Unofficials and that they have now cooled down

considerably. It is however clear that a statement by a Home Office

Minister in Parliament is essential to put the seal on the efforts of

Ministers and the Governor to reassure UMELCO. I say a Home Office

Minister because it would be tactically much wiser to have the statement

made at the end of the debate on the third day. It would therefore

probably have to be made by Mr Raison.

The statement should also repeat

HMG's commitment to Hong Kong along the lines used by Mr Whitelaw when

he introduced the Bill in January.

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6. In paragraph 6 of Hong Kong Telegram Number 532 the Governor suggest-

ed that he be instructed to tell Sir S Y Chung that a reply would be

sent to his letter immediately after the debate on the third reading.

Whilst I agree that this is when a reply should be sent, I would prefer

not to link the timing directly with the third reading, in order to

guard against the possibility that the assurances we want are not given

or are inadequate. This is not I believe likely to happen but it would

be serious if the current goodwill in UMELCO were lost because the

Governor had by implication raised undue hopes about what was to be said

in Parliament.

7. The Governor has also provided a draft reply to Sir S Y Chung's

letter in Hong Kong Telegram Number 533. I have discussed this with

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/Mr Jones.