TNAG-2892-FCO40-4165-Transfer-of-assets-from-the-Hong-Kong-Government-to-the-Spec-1993 — Page 29

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CONFIDENTIAL

all HKG's assets will pass to the CPG anyway

10. There are obvious dangers in our raising this subject with the Chinese and it would probably be better to do so later rather than sooner. We might in the meantime consider

whether there would be any opportunity to obtain a better indication of their thinking on when they propose to establish

the SARG, and to quietly impress on them the enormous legal

and practical difficulties which would result from any

delay in the creation of the SAR/SARG. This would

not necessarily have to be done through government channels.

Proposed Way Forward

11. It is proposed that following discussion of this paper a

revised paper be prepared and that comments be sought from

HKG, Peking and UKREP JLG.

CONFIDENTIAL

assets.paper/MONEY/bp