TNAG-1242-FCO40-1555-Future-of-Hong-Kong-1983 — Page 179

13

SECRET

Governments for mishandling the talks. This article contains the Review's revelation of Mr Heath's row with the Hong Kong UMELCO and, like other newspapers, repeats a claim that Mr Richard Evans will succeed Sir P Cradock as Ambassador in Peking at the end of the year.

1987

7. The outlook is not encouraging, but I would not expect a m dramatic slide of confidence before the 22/23 September talks. Much will depend on the public outcome, ie whether or not a date for a further round is announced. There is, however, no likelihood of any let-up in the Chinese propaganda before then. We know, from deduction and intelligence, that the propaganda is specifically intended to put pressure on us to alter our position in the talks.

8. As you know, EXCO have raised the question of our public relations stance and wish to discuss it during Mr Luce's visit. We cannot usefully consider any shifts in our position or new public lines to take before then. However, the strength of the Chinese propaganda campaign does argue for the greatest possible pressure by our negotiators on the Chinese to cooperate in maintaining rather than damaging confidence. included in our submission.

C

This has been

Brim

16 September 1983

SECRET

R D Clift

Hong Kong Department