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From the Private Secretary

SECRET

ET MON

DROIT

10 DOWNING STREET

(49

Bi/th luce PS/PUS

10 February 1984

X.

الفلفل العمل

Future of Hong Kong

N

Sir Cradock

Sir W Haveling

Mr Jamald

10/2

FED)

The Prime Minister has seen the Foreign and Commonwealth Secretary's minute of 7 February and the accompanying Working Paper on constitutional arrangements and central government structures.

As I told you on the telephone this morning, the Prime Minister would like paragraph 4 of the Working Paper to be amended to read as follows: "The Government of the Hong Kong SAR would be composed of local inhabitants. Chief officials would be nominated by the SAR Government. The people nominated would then be appointed by the Central Government. Other officials would be appointed by the SAR Government."

With that amendment, the Prime Minister is content with the Working Paper.

The Prime Minister also considered whether we should insert in this paper wording to the effect that agreements reached between Britain and China would be incorporated in the SAR Basic Law. On reflection, Mrs Thatcher believes that this is a point of general application and that it would therefore be inappropriate to insert in a paper on a limited aspect of the future arrange- ments in Hong Kong. But she has asked me to state that she believes it essential that the eventual bilateral agreement between Britain and China contains a clear assurance that the agreements reached between the two countries on particular points in the course of the negotiations will be reflected in the Basic Law.

I am copying this letter to the other members of OD(K) and to Sir Robert Armstrong.

P. F. Ricketts, Esq.,

Foreign and Commonwealth Office.

Your ever

L

Lola Colas.

13/2

Mr. Morris /Mr. Powell

Mr. Home is dealing wit

SECH the fist bit (X). Y. noted for the future agreement

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must be

213/2

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