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relationship between Hong Kong, China and the United Kingdom and
possible solutions to the 1997 lease problem.
5.
His Office has asked for briefing for Dr Owen if we think it
would be useful. When"we first learnt of Dr Owen's visit and the
Governor offered to accommodate him and help with any arrangements
for his brief stay, the Governor believed that the theme of
Dr Owen's talk would be 'steady nerves'. Now that it is to be about
the 1997 problem, the Governor is concerned that what Dr Owen might
say in his speech might be construed locally as reflecting briefing
by the Governor.
6.
The Governor had thought of seeking to have the speaking
engagement cancelled but considers that at this late stage cancellation
might do more harm than good. It is being emphasised therefore that
the engagement is a private one and the Governor is curtailing
attendance by Hong Kong Government officials to a minimum and below
the most senior level.
7. As a recent ex-Foreign and Commonwealth Secretary what Dr Owen
says is bound to attract attention and be given more credence than is
normal in the case of other visiting speakers. It is desirable there-
fore that an FCO Minister seek to explain to him that people in both
Hong Kong and Peking may assume that what he speculates about the
future in fact reflects British Government policy. This could lead
to the Chinese making public statements about their position which
in turn could circumscribe negotiations (as happened in the case of
Lord Carrington's visit last year) during the Prime Minister's visit.
We have been at pains to avoid giving any indication of our position
to the Chinese in advance of the Prime Minister's visit.
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CONFIDENTIAL