TNAG-1167-FCO40-1447-Future-of-Hong-Kong-1982 — Page 15

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-5-

DSR 11C

Chinese will be prepared for full scale negotiations

then but you will not be able to avoid raising the

subject.

There is a reasonable chance that you would be

able to get agreement at least on continuing discussions.

It would therefore be helpful now to clarify our ideas

on our own bargaining position, including the question

of sovereignty.

paper which discusses a number of possible options.

You may find it useful to see the enclosed

None

of these are definitive but the paper gives some idea of

the limits within which we might work. I suggest that

you might now find it useful if Humphrey Atkins and I

were to go over some of the ground with you. You might

then like to consider discussing the question with other

colleagues (not necessarily in full Cabinet) in order to

work out a line for your visit. If you think it useful

we could in addition arrange a meeting with the present

Governor of Hong Kong and the Ambassador in Peking,

well as Sir Edward Youde.

as

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