BE USED TO GET THE CHINESE INTO A MORE INFORMAL EXCHANGE ON THEIR
ANXIETIES WITHOUT GETTING THEM FORMALLY COMMITTED IN PUBLIC TO A
DEMAND THAT THE SUBJECT BE DEALT WITH IN THE JLG. I THINK EXCO
WOULD PROBABLY BE READY TO TELL THE CHINESE NOW THAT WE WOULD BE
WILLING TO HAVE A DIALOGUE ON THEIR ANXIETIES BUT THAT IT WOULD
BE EASIER TO TAKE ACCOUNT OF THE SENSITIVITIES OF BOTH SIDES IF
THIS WERE CONDUCTED OUTSIDE THE JLG.
5. THERE ARE ALSO ISSUES OF PUBLIC PRESENTATION NOT DEALT WITH IN
YOUR TELEGRAM. IT IS TRUE THAT THE JOINT DELCARATION PROVIDES FOR
CONSULTATION ON A SMOOTH TRANSITION BUT IT SPECIFICALLY (AS A
RESULT OF OUR INSISTENCE IN THE NEGOTIATIONS) TIMES THIS CONSULTA-
TION FOR A SECOND STAGE. NOR DOES YOUR TELEGRAM PRODUCE THE ANSWER
TO THE INEVITABLE CLAIM THAT THE CHINESE ARE ASSERTING AND THE UK
ARE ALLOWING THE JLG A SUPERVISORY ROLE OVER THE PRE-1997
ADMINISTRATION. SUSPICIONS ABOUT THE JLG WERE REMOVED BECAUSE IT
WAS MADE CLEAR IN THE JOINT DECLARATION THAT ITS FIRST TASK WAS
A PRACTICAL ONE CONFINED TO INTERNATIONAL ISSUES. IF IT NOW
BECOMES KNOWN THAT HMG ARE TALKING IN SECRET TO THE CHINESE ON
CONSTITUTIONAL MATTERS IT WILL AROUSE ALL THE OLD SUSPICIONS THAT
ANOTHER DEAL IS BEING DONE BY HMG AND THE CHINESE GOVERNMENT OVER
THE HEADS OF THE PEOPLE OF HONG KONG.
6. FOR THE REASONS IN MY TEL UNDER REFERENCE AND THOSE GIVEN ABOVE,
I THINK THAT EXCO WILL STILL CONSIDER THE COURSE PROPOSED IN MY TEL
UNDER REFERENCE THE MORE PRUDENT ONE. WHETHER THEY WILL ACCEPT THE
COURSE YOU HAVE PROPOSED WILL DEPEND IN PART ON THE ANSWERS TO THE
ABOVE POINTS. I THINK HOWEVER THAT THEY WOULD ACCEPT THAT, IF THE
CHINESE INSISTED ON MAKING A STATEMENT UNDER, FOR EXAMPLE ''ANY
OTHER BUSINESS'', OUR DELEGATION SHOULD NOT SEEK TO STOP THEM
AND WOULD HAVE TO AGREE TO STUDY IT.
}
7. I SHOULD BE GRATEFUL FOR YOUR FURTHER COMMENTS ON THE POINTS
RAISED ABOVE DESKBY 15010OZ SO THAT THEY CAN BE TAKEN INTO ACCOUNT
DURING THE EXCO DISCUSSION.
YOUDE
'HONG KONG AGREEMENT
LIMITED
HD/HKD
HD/FED
HD/PLANNING STAFF HD/PUSD
DEP HD/PUSD
RES D (MR WALKER)
PS
PS/MR RENTON
COPIES TO: (VIA ADR)
MR ROBERTS NEWS DEPT MR FIFOOT LEGAL ADVS MR MARTIN ASST STAFF
CABINET OFFICE
MR MALLABY CABINET OFFICE MR DR C CHRISTOPHER
CABINET OFFICE SIR P CRADDOCK NO 10 DOWNING ST. MR WOOD LEGAL ADVISERS
PS/PUS
SIR W HARDING
MR WILSON
SIR J FREELAND
MR J CROWLEY PUSD
-2-
SECRET
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