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considerable symbolic significance for the Chiense. The Group also gives them an institutional means to monitor and influence what goes

on in the territory.

7.

(a)

For the future we believe Chinese aims will be as follows:

through their institutional presence in Hong Kong

and their participation in the Group gradually to

increase their general influence on the Government

and over all sectors of society;

(b) to keep a close eye on the British administration

of Hong Kong, with particular reference to economic

and budgetary policy;

(c)

(d)

(e)

to achieve a droit de regard over constitutional

development and important changes in the public

service (in particular the selection of junior

personnel);

to educate their officials about the way Hong Kong

capitalist system works;

as our aim under 4(a), but with the overriding aim

of ensuring that autonomy in Hong Kong does not

lead to the development of political trends unacceptable to China.

PRACTICAL DECISIONS

8. In the light of these aims we need to begin considering a number of practical aspects of the work of the Joint Liaison Group,

as set out below.

9. In the initial period it is probably in ouf interests for the

meetings of the Group not to be too frequent. A gradual start to the activities of the Group would make it easier to accustom

Hong Kong to it. On the other hand there are already areas where

consultation with the Chinese is becoming necessary (eg the White

CONFIDENTIAL

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