SECRET

basis of the published text of the draft agreement, together with

covering explanatory and commendatory statements. The results,

added to the monitoring of public opinion, would form the basis of

advice from the Hong Kong Government to enable HMG to assess whether

a recommendation to Parliaemnt could be justified.

16. If this approach is agreed, we should probably not delay much longer in announcing how we intend to assess opinion. The question

is increasingly asked and our reply that we have not yet decided is

becoming less credible. If a second Ministerial statement were to

be made within the next four to six weeks, that might be the right

occasion. If it were to be delayed longer we might need to find

another way of making the announcement, eg in answer to an inspired PQ or through a statement by the Governor.

EXCO AND LEGCO

17. The special position of these bodies will have to be taken into

account. EXCO will probably expect to continue to be closely

consulted. At the same time however, EXCO Unofficials may maintain or step up their present tactics of distancing themselves from HMG's position and taking up a public position at variance with it. A

break with the Unofficials can by no means be ruled out. This would

make very much more difficult our task of convincing Hong Kong

opinion to accept the agreement negotiated. LEGCO has given notice that it will wish to debate the question when a draft agreement is published. The Chinese will be highly suspicious of this. It will be important to continue to represent LEGCO discussion as a part of

the process of consultation not the key element, and to avoid any suggestion of a LEGCO veto.

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