CONFIDENTIAL

evolved considerably.

It is now widely accepted that a forum for consultation over the implementation of the agreement will indeed be

necessary.

4.

We shall certainly need to ensure that the Group's activities

remain within the bounds set for it and that it is not allowed to

interfere in the administration of Hong Kong. It is however

self-evident that we are going to need close co-operation and

harmony with the Chinese Government in the years ahead, both because

it is only with increased trust and confidence between the two sides

that we can hope to play an informal role in the most sensitive areas of activity of the Chinese, such as the drafting of the Basic

Law, and because a public image of harmony and co-operation is

essential if confidence is to be maintained.

5.

(a)

(b)

(c)

(d)

Our aims for the Group might therefore be:

to cooperate fully in the practical areas of work

agreed upon in Annex II;

to continue educating Chinese Leaders and officials

on the way Hong Kong works;

to seek to influence the drafting of the Basic Law,

and in particular the evolution of Chinese thinking

on its provisions for the constitution and

government structure of the Hong Kong SAR;

to use the Group to create conditions for a smooth

transition up to 1997, with Hong Kong enjoying the

full degree of internal and external autonomy

provided by the terms of the agreement;

(e) to prevent the Group being used by the Chinese to

interfere in the administration of Hong Kong in the

period up to 1997.

CHINESE AIMS

CONFIDENTIAL

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