TNAG-1238-FCO40-1551-Future-of-Hong-Kong-1983 — Page 50

1.

(368

CONFIDENTIAL

Foreign and Commonwealth Office

London SW1A 2AH

372)

S J Gomersall Esq WASHINGTON

Dear Stephen.

NIKKOAOLI

RACEIVED IN REGISTRY NO. 51

**

- 6 JUL 1983

PA

REGISTRY (Action Takan

DESK OFFICED

INDEX

FUTURE OF HONG KONG: CRS PAPER

5 July 1983

Thank you for your letter of 28 June to Warwick Morris who is on leave. We are grateful for this opportunity to comment and agree with your suggestions for improving the paper. It is in any case wrong to say on page 5 that the approach of 1997 'begins to disrupt mortgages'. 'Focussed attention on the length of Crown Land leases in the New Territories' would be better. On page 10 we would be inclined to reverse the order of importance between the 'more skeptical view' and that attributed to 'many leading observers', but clearly this is a matter of individual judgement. On page 10 too, we would doubt whether Chinese policy would be 'disrupted' by Liao's death.

2.

You might also suggest that Sutter include a reference to the announcment on 1 July that a second phase of the talks will begin on 12 July. This bears out the Governor's statement in his interview on 20 May that the talks were moving in the right direction.

Your ever

Nigel Cox

cc: RJT McLaren Esq CMG

Political Adviser HONG KONG

for

R D Clift

Hong Kong Department

CONFIDENTIAL