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realism at Westminster as to the extent to which HMG can impose constitutional prescriptions upon Hong Kong without regard to

Chinese sensitivities and concerns. Calls for direct elections

HMG

i s deferring to Chinese

" come what may" were very few. There is however a risk that

perceptions will change if

if the impression gains grounds that

wi shes on the internal

administration of Hong Kong before 1997: We may

then be more

broadly criticised for not providing an adequate representative

basis for Hong Kong's autonomy post-1997.

14.

Even if there is a broadly realistic view there will

continue to be reflections of the more radical viewpoints from Hong Kong. As examples of the differing poles of opinion I

attach recent cuttings from the Economist and Observer on the

one hand, and from the Daily Telegraph on the other.

general moderation of the Westminster view is well demonstrated

by the quotes from parliamentary spokesmen in the Ob server

article.

The

Tentative conclusions

15.

shall need to guide

in Hong Kong with

We have major problems ahead. We

the development of Representative Government

a very careful hand over the next few years. The Governor will

be visiting the UK in the first two months of the New Year:

this opportunity should be used for a thorough discussion with

him.

The 1987 Review represents only the first major landmark

on the path towards 1997. To reach this landmark safely we

shall need to:

(a)

Handle our evolving dialogue with the Chinese with great

care, seeking every opportunity to draw them out,

whether in Hong Kong or in Peking. A flexible mandate

will be needed from EXCO.

(b)

Do all we can to keep down the level

of Chinese concerns

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