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6. THE ARGUMENTS IN FAVOUR OF GOING PUBLIC BEFORE AN AGREEMENT

IS SIGNED ARE THAT

(A) WE SHALL SHOW THE POPULATION OF HONG KONG THAT WE

INTEND TO ROOT POLITICAL POWER IN HONG KONG TO THE MAXIMU EXTENT

POSSIBLE (SEMI COLON)

(B) THE CHINESE CANNOT AFTERWARDS CLAIM THAT WE MISLED THEM.

7. THE ARGUMENTS IN FAVOUR OF WAITING UNTIL A LATER STAGE

ARE

(A) THE AGREEMENET WILL ALREADY HAVE

BEEN SIGNED (BUT HOW DO WE THEN WORD THE AGREEMENT AND ITS

ANNEXES?)

(B) THE ANNOUNCEMENT WILL HAVE NO IMPACT ON THE TALKS (SMI-COLON)

AND

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(C) THE GREEN PAPER MAY CAUSE LESS OF A STIR IN HONG KONG.

8. ONCE OUR PROPOSALS FOR LEGCO AND EXCO HAVE BEEN

PUBLISHED THERE WILL INEVITABLY BE QUESTIONS ABOUT

HOW FUTURE GOVERNORS WILL BE CHOSEN. WE SHALL NOT GET AWAY WITH FUDGING THE ISSUE. WE CANNOT LOOK AS IF WE HAVE NOT THOUGHT THINGS THROUGH. THIS IS WHY I DO NOT BELIEVE THAT THE COURSE IN PARA 4(B) OF YOUR TUR IS A RUNNER.

9. MY CHOICE WOULD STILL BE 4 (A) IN YOUR TEL UNDER REF. FOR REASONS SET OUT ABOVE. IF MINISTERS ARE NOT PREPARED TO TAKE

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IMMEDIATE RISK THEN MY CHOICE WOULD BE 4 (C), BUT THE RISK WILL HAVE TO BE FACED SOMETIME UNLESS WE INTEND TO BACK DOWN ON A LOCALLY ELECTED GOVERNO.

10. ON 1(C) IN YOUR TUR, THE EFUECT IN HONG KONG WILL BE THE SAME WHENEVER WE MAKE THE ANNOUNCEMENT. THEORETICALLY WE COULD PROPOSE DELAYING THE ELECTION OF THE GOVERNOR UNTIL

1995 BUT THAT PROPOSITION WOULD BE TOO CLOSE

TO 1997 TO CARRY ANY CREDIBILITY.

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