SECRET

29494 1

G

OF BUSINESS CONFIDENCE. BEYOND THAT THE US BELIEVED THAT THEIR

BEST CONTRIBUTION TO THE HONG KONG ISSUE WOULD BE TO IMPROVE

US/CHINA RELATIONS IN A WIDER CONTEXT, WITHOUT GETTING DIRECTLY INVOLVED. WOLFOWITZ DID HOWEVER SUGGEST THAT WE CONSIDER WHETHER

THE US HANDLING OF THE HUGUANG RAILWAY BONDS AFFAIR MIGHT OFFER A

USEFUL PRECEDENT AS A METHOD FOR BREAKING DOWN CHINESE

MISCONCEPTIONS ABOUT HONG KONG. PROGRESS HAD BEEN MADE BY

TECHNICAL DISCUSSION, OUTSIDE THE MAIN ARENA OF THE TALKS, WHICH HAD ENABLED USEFUL INFORMATION TO BE PUT ACROSS TO THE CHINESE.

HOWE

FUTURE OF HONG KONG

LIMITED

ED/KO

COPIES TO: (VIA DISTR. FOOM)

SIR FEILIP MOORE BUCKINGLAK PALACE PS/LORD PRESIDENT OF THE COUNCIL

D/FD

ED/PLANNING STAFF

ED/PUSD

D/ED/PUSD(MR FLOWER)

RESEARCE DEPT(MR TALKER)

LEGAL ADVISER (SIR LAN SINCLAIR)

PS

PS/LADY YOUNG

PSAR LUCE

PS/PUS

SIR J BULLARD

MR GIFFARD

MR DONALD

MR FRIGET

3

SECRET

PS/HOME SECRETARY

PS/CHANCELLOR OF THE EXCHEQUER PS/LORD PRIVY SEAL

PS, SECRETARY FOR TRADE AND

COPIES TO:

MR ROBERTS

INDUSTRY

(VIA ADR)

NEWS DEPT

ME BURROWS LEGAL ADVISERS MR COLES NO 10 DOWNING ST SIR A PARSONS

T

MR MARTIN ASSESSMENT STAFF

MR GOODALL

MRBRENNAN

CABINET OFFICE CABINET OFFICE

1

PS/S OF S FOR DEFENCE PS/ATTORNEY GENERAL

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