5.
The changed situation in Hong Kong is also relevant. Things are far from desperate: but in spite of our efforts to steady opinion, concern is growing and confidence ebbing. There has been something of a flight from the Hong Kong dollar. Soon after the summer holidays we shall come to the anniversary of the Prime Minister's visit. We may well not be able to point publicly to much progress in the talks. That may in itself engender additional pessimism. If the situation continues to the end of the year confidence may drain away even faster.
6.
Soon after the summer holidays therefore, if not before, we may have to consider seriously some rather more. dramatic move. We shall need to do so to show people here that someone in authority in London is active in the cause. We may also need to make a determined effort to move the talks in Peking back to a level where we might hope to make some political impact. Wrestling in the mud with Yao Guang will not be enough.
1.
We do not have to come to decisions on this now. But I believe that it will be very important to ensure that ministerial arrangements in the Office following the election are such as to provide for senior day-to-day ministerial attention to the Hong Kong issue. This will be essential if the talks are in full swing. We must also provide for the possible need for a senior ministerial visit to Peking in the autumn if we have once again run aground.
The ideal would be for the Secretary of State himself to be seen to be more personally involved during the second half of the year than he has in the past. I
8.
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