CONFIDENTIAL

(E) PARAGRAPH 7, FIFTH SENTENCE: WE SUGGEST THAT THIS SHOULD READ: THIS IS PRACTICAL EVIDENCE THAT WE ARE WORKING CONSCIEN-

TIOUSLY TO PRESERVE PROSPERITY AND STABILITY AND TO ENSURE THAT

HONG KONG IS RESTORED TO CHINA IN 1997 AS A THRIVING CONCERN' IT IS POSSIBLE THAT THE CHINESE MIGHT ARGUE (ALBEIT SPECIOUSLY) THAT

WHAT WE SAID WE WOULD DO IN THE JOINT DECLARATION WAS HAND HONG

KONG BACK AS IT WAS ON 26 SEPTEMBER 1984.

(F) PARAGRAPHS 9 AND 9: WE SHOULD PERHAPS BEWARE OF SUGGESTING TOO

FORCEFULLY THAT THE DEVELOPMENT OF REPRESENTATIVE GOVERNMENT

IS A RESPONSE TO THE ASPIRATIONS OF ONLY ONE (RELATIVELY NARROW)

SECTOR OF HONG KONG SOCIETY. WE SUGGEST, THEREFORE, THAT THESE

PARAGRAPHS ARE BOTH EXPANDED TO MAKE THE POINT THAT ASPIRATIONS

TOWARDS GREATER INVOLVMENT IN GOVERNMENT ARE WIDESPREAD.

(G) PARAGRAPH 12, LAST SENTENCE: WE WOULD PREFER TO OMIT THIS. NOW THAT WE HAVE SOME EXTENT MOLLIFIED THE CHINESE WE SEE NO POINT IN

SUGGESTING THAT OUR EXCHANGES HAVE BEEN "HOSTILE'. THERE IS

ALSO A RISK THAT THE CHINESE WILL ARGUE THAT THEIR POSITION WAS

BASED ON PRESS REPORTS PRECSELY BECAUSE WE HAD FAILED TO KEEP

THEM PROPERLY INFORMED OF WHAT WAS HAPPNEING.

EVANS

LIMITED

HKD

FED

SIR W HARDING MR WILSON

-2- CONFIDENTIAL

CONF

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