(28A)
(594)
GPS 900
SECRET
FM HONG KONG
SECRET
AMENDED DISTRIBUTION 18 DECEMBER 1985
TO DEKSBY 16120OZ FCO
TELNO 2835
OF 16100OZ DECEMBER 35
INFO DESKBY 170100Z PEKING
HRK 011/1
RECEIVED IN REGISTRY 19 DEC 1985
RESISTAY
Action Taken
AjB 9
(393)
MY TELNO. 2805 : STATE COUNCELLOR JH PENGFEW'S VISIT
1. I HAVE REVIEWED EVENTS OVER THE LAST MONTH AND THEIR IMPACT ON
HONG KONG INCLUDING THE EFFECT OF THE PRESS CONFERENCE GIVEN BY
XU JHATUN, NCNA CHIEF: THE JOINT LIAISON GROUP: AND THE VISIT
OF STATE COUNCILLOR JH PENGFE:*.
2. JM PENGFE HAS DEMONSTRABLY CHOSEN TO PLAY THE ROLE OF THE
CONCERNED STATESMAN READY TO LEARN ́THE VIEWS OF THE PEOPLE OF
HONG KONG KEEN TO CALM TROUBLED WATERS. TO THAT EXTENT HONG KONG
HAS BREATHED A SIGH OF RELIEF. BUT BENEATH THE SURFACE THERE HAS
BEEN AS A RESULT OF XU'S PRESS CONFERENCE AND THE JLG,
+
A SUBSTANTIAL INCREASE IN SUSPICION ABOUT CHINESE
UINTENTIONS POST-1997: **N CONCERN THAT THEY WILL INTERVENE AGAIN
BEFORE 1997 ON IMPORTANT ISSUES WHEN IT SUITS THEM: AND IN THE
FEAR THAT IT AS THE CHINESE AND NOT HMG WHO WILL BE CALLING THE
SHOTS ON SUCH MATTERS OVER THE NEXT 10 YEARS. FOR EXAMPLE, CONTACTS
WHOM TRUST TELL ME THAT MUCH OF THE DAMAGE TO CONFIDENCE WAS
CAUSED, NOT BY A BELIEF THAT WE ARE PRIVATELY IN TOUCH WITH THE
CHINESE ON SENSITIVE SUBJECTS, BUT BY THE IMPRESSION THAT IT WAS
XU'S PUBLIC BLAST WHICH LED THE BRITISH SIDE TO AGREE TO
REPRESENTATIVE GOVERNMENT BEING DISCUSSED IN THE JLG.
3. HAVE CONSIDERED WHETHER WE MIGHT HAVE DONE MORE TO AVOID THIS SITUATION. IT IS DIFFICULT TO BE CERTAIN. BUT WITH HIDDSIGHT
BELIEVE THAT WE DID NOT READ WITH SUFFICIENT SERIOUSNESS THE
SIGNALS WHICH THE CHINESE WERE SENDING US ON REPRESENTATIVE
GOVERNMENT. WE WERE THEREFORE TOO SLOW TO ESTABLISH AN INFORMAL
CHANNEL OF COMMUNICATION WITH THEM THROUGH WHICH WE COULD HAVE GIVEN
THEM MUCH EARLIER THE KIND OF EXPLANATION WHICH WE HAVE NOW GIVEN
TO JM PENGFE. THEY CLEARLY ATTACHED IMPORTANCE TO THE 'MESSAGES''
WHICH THEY WERE SENDING IN WU XUEQIAN'S DISCUSSIONS WITH THE
SECRETARY OF STATE IN JUNE: THROUGH XU JHATUN: AND FINALLY THROUGH
SIR PETER BLAKER'S DISCUSSION WITH ZHOU NAN WHICH XU JLATUN
REINFORCED AT THE DINER FOR MR RENTON ON OCTOBER 29.
4. WE CANNOT AFFORD TO OVERLOOK SUCH SIGNALS AGAIN ON ANY SUBJECT
AND MUST BE QUICKER TO RESPOND TO THEM. WE HOPE THAT ON
REPRESENTATIVE GOVERNMENT WE SHALL BE ABLE TO KEEP OPEN INFORMAL
CHANNELS (ALTHOUGH THERE IS ALREADY SOME INDICATION THAT CHINESE
INTERDEPARTMENTAL RIVALRIES ARE GOING TO COMPLICATE OUR TASK: }
WILL TELEGRAPHING SEPARATELY ON THAT). HAVE ALSO CONSIDERED WEATHER THERE IS ANY OTHER ISSUE ON WHICH A COMBINATION OF
SECRET
/SUDDEN