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BACKGROUND AND ARGUMENT
3.
We are sending No 10 a summary of the Fourth Round of talks. Having agreed to leave aside principles and move on to substance, the Chinese now seem to be digging in for a long haul. Their tactics are likely to be to give us very general points on the main electoral issues, and press us to come up with detailed alternatives to the Governor's proposals (which the Chinese maintain cannot be discussed in the talks because they violate the agreed basis for the talks).
4. As agreed with the Secretary of State, Mr Goodlad called in Ambassador Ma today to emphasise:
(a) That we can only make progress when we know Chinese views on all the main issues including the through train and the other points we have raised;
(b) That once we do have Chinese ideas, they will find us very reasonable;
(c) That time is not unlimited and that we
should therefore plan to hold two rounds of talks in June and by the end of these to have discussed
both sides' views on all the main issues.
These points will also be the burden of our song in the Fifth Round.
5. If the above assessment of Chinese tactics is right, we shall be running out of negotiating material by the end of the Sixth Round, if not the Fifth Round. If, contrary to our expectations, the Chinese side do set out their
hum4.6strategy
CONFIDENTIAL Covering SECRET
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