TNAG-1346-FCO40-1776-Proposed-realignment-of-the-Shenzhen-River-1984 — Page 19

CONFIDENTIAL

3. THERE ARE CLEAR ADVANTAGES TO BOTH SIDES IN TAKING ACTION TO

REVENT FLOODING. WE THEREFORE PROPOSE, SUBJET TO YOUR VIEWS, TO AGREE IN PRINCIPLE TO THE SUGGESTED REALIGNMENT, AND TO SEEK TO NEGOTIATE THROUGH EXISTING LIAISON CHANNLES WITH THE SHENZHEN AUTHORITIES A DE FACTO AGREEMENT ON THE LIMITS TO WHICH THE SECURITY FORCES ON BOTH SIDES WOULD PATROL FOLLOWING THE REALIGNMENT. THE SIMPLEST SOLUTION WOULD BE TO TREAT THE NEW RIVER LINE AS THE LIMIT OF PATROLING. ANY AGREEMENT WOULD ALSO HAVE TO INCLUDE A CLEAR UNDERSTANDING ON HOW ANY DISPUTES ABOUT THE LAND AFFECTED (AND ANY CRIMES COMMITTED ON IT) SHOULD BE HANDLED. SINCE THERE ARE A NUMBER OF AREAS OF LAND ON THE HONG KONG SIDE OF THE BORDER OWNED BY COMMUNES IN CHINA, THERE ARE PRECEDENTS FOR DEALING WITH PROBLEMS OF THIS KIND. WE DO NOT ANTICIPATE ANY DIFFICULTY IN REACHING SUCH AND AGTEEMENT WITH THE SHENZHEN AUTHORITIES.

4. THE FINANCIAL IMPLICATIONS OF THE PROPOSED REALIGNMENT HAVE YET TO BE WORKED OUT. THE SPEED AT WHICH THE PROJECT COULD BE IMPLEMENTED WOULD DEPEND ON WHEN THE NECESSARY FUNDS COULD BE MADE AVAILABLE.

HADDON-CAVE

LIMITED

HKD

FED

MR. DOMAND

THIS TELEGRAM WAS NOT ADVANCED

CONFIDENTIAL

FC040/1776