SECRET

Mr. Mound

M. Hum

нит

Cu 29/5

Private Secretar Hoare

HONG KONG

1.

C Acceptability: the Soveins

is to give no fuck views expanding the paper

@ Grit ANK without EXCO:

From

Date:

M H Jay

24 May 1984

m. Powell

CC:

Dr Wilson

Mr

Clift-

we must discurs

meeting

Pl. anauge

getnoon.

The Governor of Hong Kong called on the US this morning, as a prelude to his meeting with the Secretary of State this

NEGOTIATIONS IN PEKING

2.

The PUS mentioned the proposal that Dr Wilson should spend a month in Peking negotiating the annexes to the agreement, supported by Mr McLaren and Mr Nazareth from Hong Kong. Would the Governor see any objection to this arrangement? The Governor said he thought it an excellent idea that Dr Wilson should do this. He would like to think further about whether Mr McLaren could add anything to the team. He thought it important that Mr Nazareth should go, since Diplomatic Service officers did not know the domestic side of Hong Kong, which was the main subject of the annexes. He agreed that the Chinese might cause difficulties about granting a visa to Mr Nazareth, but thought they would give way if we were tough enough with them.

AGENDA ITEM 2

3.

The PUS explained the outcome of OD (K) yesterday evening.

ACCEPTABILITY

4.

The PUS said that the acceptability of an agreement to Hong Kong was on the Secretary of State's mind. Some present at yesterday's OD (K) had seen the acceptability clause as a millstone round our necks, though the Prime Minister had said clearly that it existed and must be taken into account. The PUS commented that Parliamentary opinion here had diverged more than was to be expected from Hong Kong opinion.

5.

OD (K) had concluded that there should be a positive sounding of District Boards and other bodies and a negative sounding of opinion in Hong Kong more widely. There was a strong feeling that the measurement of opinion should not be too precise, and that the right questions should be asked. The Secretary of State was concerned about how the soundings would be handled, and how the agreement would be commended to Parliament. On the question of mechanics, the Governor said he assumed that the agreement would be published at the end of September. He would make a speech on 4 October to LegCo. There might be a requirement for a special session. In his speech the Governor would invite comments from District Boards and from others. The comments would be analysed and put to Parliament. On the question of commendation, the Governor said that the agreement should be commended by HMG. HMG were negotiating with the Chinese, and this is what the Chinese would expect. The Chinese angle must be borne in mind. The Chinese did

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