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reflect the possibility of the fiscal reserves falling below a certain level. An offer to Quote alert Unquote the Chinese or Quote discuss the consequences Unquote with them or Quote consult on possible remedies Unquote might be less binding alternatives to be deployed in negotiation than the offer to consult on appropriate measures.
5. As regards Chinese assurances, we note the views of
Sir D Ford and Peking, which you have expressed to me too, that our focus should stay on PADS and the financial power needed to 12 retain effective control of the project. The deal set out in
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your original draft letter to Lu Ping will of course Look significantly more attractive if it is set against the background of a broader understanding on consultation and co-operation reached during the Secretary of State's visit. This is essential and a point which as Sir D Ford suggests you will need to make to Lu Ping when you see him in preparation
min 19 for fuller discussions in Peking.
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hima
I have discussed these reactions with Lord Caithness and 22 will inform the Secretary of State overnight. Providing you can
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make the necessary amendments, it should be possible for the message to issue immediately after the No 10 seminar. wish to talk through any of these points, I shall be at my desk between 170OZ and 1945Z this evening (071-270 2214).
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