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afterwards. He confirmed this view

But

he also emphasised, and I am sure that he is right, that it is essential to take the Unofficials along with us at all stages in the negotiation and not to adopt any separate, purely ''British'', strategy of our own. Provided that we retain their confidence we should find them ready to discuss changes of course rationally, if it appeared that we were not proving successful in achieving our agreed aim.

5. At the same time we are likely to continue to get pressure, from EXCO for a greater involvement in day to day discussion on the strategy. It was interesting that in their meeting with me they ask if they could have for instance records of meetings chaired by Mr Donald to discuss the future. I deflected these requests, emphasising that the main thing was to ensure that the Governor had full assessments to discuss with them. We should maintain this line, but should ensure that we pass on to the Governor any information (from overt sources) which might otherwise reach EXCO through other channels.

Other Opinion in Hong Kong

6.

3

I did not have time to meet a sufficient cross-section of people to form any firm views on bodies of opinion outside EXCO There is some tendency, particularly by young business people, to criticise EXCO as being elitist and out of touch. On the other hand, I doubt whether their views on the future defer radically from those of the majority of thinking people. Most clearly want the present system to continue although many are doubtful about the ability of the British to achieve this in negotiation and few are ready to put their point of view to Peking.

7.

The group of young professionals returned from their visit to Peking during my stay. This was widely welcomed in the press not only as evidence that people were ready to speak their minds but also that they could apparently do so and get away with it with the Chinese Government. I attended a meeting of UMELCO at which Mr Alan Lee, Miss Selina Chow and Mr. Stephen Cheong gave an account of their visit. The general assessment was optimistic without being unrealistic and it was agreed that more people should be encouraged to do the same. At this meeting the leaders of the group did not reveal the existence of the contro- versial paragraph 22 of their memorandum to the Chinese Government. which dealt with the concept of an 'insulator'' between Hong Kong and China. EXCO however had been told about this and it has been reported by telegram.

Assessment of Hong Kong Opinion

8. The Governor continues to stress the importance of EXCO as the primary channel but is working to develop other ways of collecting views. The main sources are the district officers and district boards, letters to the Government from the public and meetings by senior officials with influential groups.

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