SECRET
157635
MDHIAN 778
THINK WE CAN TRY A GENERAL MESSAGE FIRST.
4.
IN TERMS OF CHINESE ASSURANCES (PARA 4 OF SECOND T U R) WE ARE, IN THE PADS CONTEXT, SEEKING ASSURANCES THAT HONG KONG WILL RETAIN ITS EXISTING FINANCIAL POWERS AND WILL REMAIN IN EFFECTIVE CONTROL OF THE AIRPORT PROJECT. PADS WILL SET A USEFUL PRECEDENT FOR OUR RELATIONSHIP MORE GENERALLY. SEEKING ADDITIONAL NEGOTIATED GENERAL ASSURANCES IS UNLIKELY TO LEAD TO ANYTHING BETTER THAN THE JOINT DECLARATION. INDEED IT COULD ALL TOO EASILY LEAD TO CHINESE QUALIFICATIONS WHICH MIGHT BE SEEN TO DETRACT FROM THE JOINT DECLARATION. WE THEREFORE THINK THE MAIN EFFORT SHOULD BE CONCENTRATED ON PADS.
DONALD
YYYY
ΜΑΙΝ
8
NO DISTRIBUTION
HD/HKD
HD/FED
PS
NNNN
DISTRIBUTION
8
PS/LORD CAITHNESS
PS/PUS
MR BURNS
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