CONFIDENTIAL

Joint Liaison Group over the implementation of the

agreement; and our perception of concerns in Hong Kong

over such matters as participation in the drafting of the

Basic Law. (This will require very careful

handling.) However we do not think it will be desirable or

necessary to go into matter of detail, and there will be

many non-Hong Kong issues to be covered in the short time

available.

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China.

3. In general the atmosphere of the talks will be as

important as substance, and more elusive: on past form

the meeting with Zhao Ziyang will probably not exceed two

hours, of which half the time will be for interpreting.

The Chinese now regard UK-China relations as having

entered a new phase and have said that they will give

politicial impetus to British commercial efforts in

They will be monitoring the Prime Minister's

visit closely for intimations of our own bilateral policy

following signature of the Hong Kong agreement. It will

be important, within the constraints of a short visit

with the agreement at centre stage, for the Prime

Minister to give positive signals. Against this, it will

be presentationally important, especially for Hong Kong

consumption, not to give commentators any opportunity to

claim that we have been influenced in our conduct of the

Hong Kong negotiations by hopes of commercial gain. This

precludes a high public profile for commercial matters

during the visit. Nevertheless, there is no reason why

trade should not be promoted strongly in private talks.

CONFIDENTIAL

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