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FUTURE OF HONG KONG : BRIEFING OPPOSITION LEADERS : MR STEEL/DR OWEN

POINTS TO MAKE

1.

2.

Francis Pym discussed with you in May. Useful to update.

Confidentiality.

1

3. Prime Minister's China visit September

Common aim. HMG's aim.

Talks agreed.

34.

Talks. Initially slow.

We found way of circumventing obstacle

of Chinese insistence on prior recognition of their sovereignty

premise.

45.

We conceded nothing. Parliament alone can decide. Stressed

need for arrangements after 1997, acceptable to Parliament, China

and Hong Kong. Flexible approach.

56.

17

Second phase of talks. Began July. Five meetings so far. Next

14/15 November.

J

67.

Delegations.

on British side.

Composition. Governor of Hong Kong participating

78. Atmosphere friendly. Chinese tough on substance. Demand

sovereignty and say sovereignty/administration indivisible.

Reiterate SAR plan for Hong Kong.

q

89. SAR plan. Most Hong Kong people sceptical. Insufficient

guarantees against PRC interference.

10.

July/September meetings. We attempted to educate Chinese on

Hong Kong's complexities. Chinese suspicious.

10.

October meeting. Headway. We proposed, without prejudice to

our position, discussion of practical measures to ensure

stability/prosperity.

This amokÜ

Initially well-received, but Chinese have

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