TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 86

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SECRET

GRS 150

SECRET

FM HONG KONG 319650Z MARCH 82

TO IMMEDIATE F C O

TELEGRAM NUMBER 296 OF 31 MARCH

PERSONAL FROM GOVERNOR

160

YOUR TELNO 285: Y K PAO'S CALL ON L P S

1. CERTAINLY I DO NOT RECOMMEND THE MEETING BE CANCELLED,

2. BUT I SUGGEST THE L P S FIRMLY CONFINE HIMSELF TO LISTENING

AND TO SAYING HE HAS NOTHING TO ADD TO WHAT HAS ALREADY

BEEN SAID BY THE S OF S AND CHANCELLOR.

3. I KNOW OF NO NEW POINTS, BUT IT IS POSSIBLE THAT PAO HAS

BEEN IN CONTACT WITH PEKING AND WILL PRODUCE SOMETHING NEW.

EVEN IF HE DOES I SUGGEST LPS STICKS TO THE ABOVE LINE. IF

PEKING IS SERIOUSLY CONSIDERING APPLYING TO US FOR A SOFT

LOAN AND LINKING IT WITH THE FUTURE OF HONG KONG THERE IS PLENTY OF TIME TO CONSIDER OUR RESPONSE, AND IN ANY CASE THIS

SHOULD NOT BE THROUGH PAO.

4. I OF COURSE ACCEPT THAT ANY ARRANGEMENT ABOUT THE FUTURE

OF HONG KONG WILL BE MORE ACCEPTABLE TO THE CHINESE IF IT HAS

COMMERCIAL AND FINANCIAL AS WELL AS POLITICAL AND LEGAL

CONTENT. I WILL BE WRITING ABOUT THIS SEPARATELY.

MACLEHOSE

MINIMAL

HK&GD FED

SECRET

PGO JlY

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