TNAG-1941-FCO40-2767-Future-of-Hong-Kong-defence-and-public-order-1989 — Page 224

CONFIDENTIAL

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MDHIAN 99

''STANDARD'' REPORT COMPOUND THIS EFFECT BY GIVING THE IMPRESSION THAT ANY FUTURE NAVAL BASE AT CENTRAL-WANCHAI IS RULED OUT AND ~ THAT HKG'S DECISIONS INVOLVED AN ELEMENT OF DELIBERATE SNUB TO THE

CHINESE. SECONDLY, THERE IS THE OBVIOUS RISK THAT THE CHINESE WILL RETALIATE TO THE CONSPICUOUS PRESS COVERAGE OF THE CHIEF SECRETARY'S ANNOUNCEMENT. THEY COULD DO SO BY A PUBLIC STATEMENT OF THEIR OWN (WHICH WOULD BE BOUND TO INCLUDE A RESTATEMENT OF CHINA'S RIGHT TO STATION THE PLA WHERE IT WISHES - HARDLY GOOD FOR IN CONFIDENCE): AND/OR BY OTHER ACTIONS DAMAGING TO OUR INTERESTS, A HONG KONG/CHINA AND UK/CHINA ATMOSPHERE WHICH IS QUITE STRAINED ENOUGH ALREADY. THE CHINESE COULD DRAW UNFORTUNATE

(IF UNFOUNDED ?) CONCLUSIONS ABOUT THE TIMING OF THE ANNOUNCEMENT IN THIS CONNECTION.

3. SO FAR WE HAVE SEEN NO OFFICIAL CHINESE RESPONSE AND IT MAY BE EARLY TO LEAP TO CONCLUSIONS. BUT IT WOULD BE VERY HELPFUL IN THE MEANTIME TO HAVE ANY FURTHER EXPLANATIONS THAT HONG KONG CAN OFFER OF HOW THE VARIOUS SPOKESMEN PLAYED THINGS ON 12 OCTOBER: AND ANY GUIDANCE YOU CAN GIVE ON THE PRESS LINE WE SHOULD TAKE WITH ENQUIRERS.

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