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147631 MDLOAN 1130
COULD BECOME INVOLVED EG. AT THE STAGE WHERE THE CE HAS TO DECIDE WHETHER TO ISSUE A WARRANT. WE DO NOT THINK WE NEED TO CONSIDER YOUR CONCERNS ON THIS POINT FURTHER AT THIS STAGE. LET US FACE THE PROBLEM WHEN IT ARISES, IN THE UNLIKELY EVENT THAT IT ARISES.
23. PARA 4: COULD THERE BE SCOPE FOR ACTION TO BE TAKEN BY AN EVENTUAL SAR OFFICE IN PEKING?
24. PARAS 5, 8 9 AND 11: NOTED.
25. PARAS 6-7: WE NOTE YOUR RECOGNITION THAT DEFINITION OF CASES INVOLVING THE TWO AREAS WILL REQUIRE CAREFUL HANDLING. REFERENCE TO QUOTE SIGNIFICANT RAMIFICATIONS UNQUOTE OR THE OTHER ALTERNATIVES YOU PROPOSE SEEM TO US TO BE A CONSIDERABLE TIGHTENING OF THE PHRASE AGREED BETWEEN THE TWO GOVERNMENTS FOLLOWING EXCHANGES IN PLENARY, IE. QUOTE IF THE CASE INVOLVES... UNQUOTE. WE DO NOT THINK WE CAN RELY ON GENERAL CHINESE STATEMENTS IN EARLIER TALKS AT EXPERT LEVEL. WE BELIEVE THAT SEEKING A TIGHTER DEFINITION COULD RUN THE RISK OF THE CHINESE CLAIMING THAT WE ARE RE-OPENING THE AGREED PACKAGE. WE SHOULD BE GRATEFUL IF YOU WOULD RECONSIDER WHETHER YOU CAN LIVE WITH A MORE GENERAL DEFINITION, IN THE LIGHT OF CHINESE ASSURANCES THAT RELEVANT CASES WOULD BE RARE.
26. PARA 10: WE THINK THE POINT RAISED HERE IS MOST UNLIKELY TO ARISE IN PRACTICE. WE SUGGEST THAT WE DO NOT CONSIDER IT FURTHER UNLESS AND UNTIL THERE IS A NEED TO DO SO.
HOWE
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ΜΑΙΝ
49
DISTRIBUTION
52
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH (FE)
PUSD
PS/LORD GLENARTHUR
PS/MR EGGAR
MR GILLMORE
MR MCLAREN
ADDITIONAL
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