(F)

COSMICE.

- 3-

Xu repeated his assertion

that the possibility

of unexpected changes could not be ruled out. When asked to elaborate, he said that such changes could be brought about for one

ne four reasons:

(1)

Contending forces in Hong Kong;

(2)

A change of government in the U.K;

(3)

Disruption by pro-Taiwan elements (Xu emphasised

that China wanted them to stay and play a

constructive role).

(4)

Economic factors (in particular protectionism in the USA.)

(g)

(h)

Xu said that there were a number of Legco members of the BLDC; this was one way in which communication and co-operation between the two sides might be fostered.

Xu also mentioned that he had been invited to the reception on the occasion of the opening of the new Legislative Council Chamber. He had decided to attend but pointed out that his attendance did not mean that he approved of the changes which had resulted in the new Legislative Council.

A Marrou

(R.P. Margolis)

DPA 12.10.85

CONFIDENTIAL

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