TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 62

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TRESISTAY SECRET Tan

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FUTURE OF HONG KONG : SPECIAL STUDY FOR THE PRIME MINISTER

1. With his minute of 27 August Lord Belstead submitted a version of this Study to the Secretary of State. I now resubmit a revised version in which the Secretary of State's comments have been included.

2.

49

See so

We are required to send the Study to the Prime Minister by the afternoon of 3 September. I submit a draft minute to the Prime Minister, together with 3 extra copies of the Study for No 10.

3.

While it is stated that other Whitehall Departments have been consulted on the Annexes, the draft minute emphasises that views and recommendations are the responsibility of the FCO alone. This has been stressed partly to meet therequirements of the Ministry of Defence. Mr Nott has expressed some concern that Annex J on Defence and Internal Security might be thought to have his own endorsement whereas he has made clear that in his view the defence considerations would require careful further study.

4. The Ministry of Defence were in any case at first unwilling to agree to any Annex on Defence going forward unless they could see the whole of the Study including the main paper. Since the paper had been commissioned personally by the Prime Minister from the Secretary of State it was not possible to show it to other Cabinet colleagues before submission to No 10 but we did show the Ministry of Defence in strict confidence an extract of Paragraphs 26 to 33 of the paper in order to help their consideration. As a result they have now agreed to Annex J with some amendments, still without commitment by Mr Nott although he has seen the extract.

5. Partly because of Mr Nott's close interest, No 10 have agreed that the Study may be sent to the Ministers of those Departments which were consulted in the preparation of the Annexes when it is submitted to the Prime Minister. Their expectation of involvement in consultation will certainly be heightened and in these circum- stances I think that there is now an argument for suggesting to the Prime Minister that she should consider ways of discussing the paper with colleagues. If she wished to take it at OD on 8 September we would circulate copies of the main paper to other members of the Committee.

2 September 1982

cc PS/Lord Belstead

PS/PUS

Sir J Bullard

Mr Giffard

Sir I Sinclair

R D Clift

Hong Kong and General Department

SECRET

I have made some

/Suggertians