TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 83

SECRET

SIR Y K PAQ'S CALL ON THE LORD PRIVY SEAL: 1500 HOURS ON 1 APRIL

POINTS TO MAKE

1.

Glad to see Sir Y K again.

Future of Hong Kong (If raised)

2. Little new since Sir Y K called on Carrington on 16 March.

Subject bound to come up during Prime Minister's visit but wrong

to expect final solution then. Important not to raise expectations.

We are happy to discuss with Chinese when they are ready.

Invitation to Vice Premier Gu Mu to visit UK (If raised)

3. Invitation is on the table. Now up to the Chinese to decide.

Not for us to push. Is Gu Mu's own future clear yet?

Soft Loan to China (If raised)

4.

Aware that Sir Y K discussed this with the Chancellor and

Lord Carrington on 16 March. Nothing further to report yet.

As Lord Carrington indicated, there are considerable difficulties.

But officials are considering and we are consulting all concerned.

SECRET