This is really relative to what you mean by a working paper.
Hypermedia as an application state mechanism will give you an oriented state / resource graph. It is not necessary that these graphs shape the workflow (for example, have a specific start and end point). They can form a loop, have bi-directional links, and more. I assume that this chart somehow escaped from business logic.
If you enable your workflow (a specific path from one point to another using a graph) in the user interface, you make some assumptions about the REST API, so carefully associate your interface with the business logic, so throw REST detection.
In general, mixed workflows (compulsory programming) with REST (declarative programming) are very problematic. The best approach would be to have an adaptive user interface that can allow the user to navigate the network of states instead of holding them back through custom, predefined workflows. In any case, the browser works.
If you really need to have some workflows, you can implement them by creating a chain of interconnected resources and directing the user to the first. In this sense, your first option will be valid, although I believe that the separation of business logic and workflow will be a gray area. Workflows are part of the business logic or, to argue better, are aligned with the business logic.
These opinions belong to me, but a good, relevant article on this topic can be found here: http://www.infoq.com/articles/webber-rest-workflow
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