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CONFIDENTIAL

GRS 650

CONFIDENT HAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2728

OF 04105OZ DECEMBER 85

INFO IMMED HATE PEKING

AKK

MC

MY TELNO 2713 AND PEKING TELNO 1774 : VISIT TO HONG KONG BY

STATE COUNCILLOR JI PENGFE

1. THE CUMULATIVE EFFECT OF THE AMENDMENTS PROPOSED IN YOUR TELNO

1904 AND PEKING TUR WOULD BE TO EMASCULATE THE APPROACH TO JI.

THEY WOULD PERMIT JI SIMPLY TO PRODUCE THE STOCK RESPONSES.

IN PARTICULAR, THE PROPOSED AMENDMENTS TO PARAGRAPH 13 OF THE BRIEF

IN YOUR TELNO 2695 WOULD HAVE THE EFFECT OF REDUCING ANY

CONVERSATION TO AN EXCHANGE OF PLATITUDES ABOUT EACH SIDE'S

SINCERITY AND DETERMINATION TO MAKE THE AGREEMENT SUCCEED.

2. 1 ACCEPT THAT IT WOULD BE UNWISE TO BELABOUR JI PENGFE1:

WE WANT TO CONTINUE THE WORK OF REASSURANCE. HOWEVER, THE LINE WE

TAKE WITH HIM SHOULD ALSO REFLECT THE FACT THAT THIS CONVERSATION

WILL BE TAKING PLACE IN VERY DIFFERENT CIRCUMSTANCES FROM THOSE IN

WHICH ALL PREVIOUS CONVERSATIONS WITH CHINESE LEADERS ABOUT HONG

KONG HAVE TAKEN PLACE. JI PENGFE! WILL BE IN HONG KONG. WE ARE

PUSHING THE BOAT OUT FOR HIM. IN OUR DISCUSSIONS WITH NCNA ON THE

DETAILS OF THE PROGRAMME, WE HAVE MADE EVERY EFFORT TO. LET J

CHOOSE FOR HIMSELF WHAT HE SHOULD DO AND HAVE ALSO SOUGHT TO AVOID.

ANY PROTOCOL EMBARRASSMENT TO THE CHINESE SIDE. ALL CONCERNED IN

GOVERNMENT AND OUT ARE MAKING AN ENORMOUS EFFORT TO MAKE JI FEEL

A WELCOME GUEST. WE SHOULD NOT UNDERESTIMATE EITHER THE IMPACT

WHICH HONG KONG ITSELF MAKES ON EVEN THE MOST CLOSED OF MINDS. IT

IS THEREFORE MY CONSIDERED BELIEF THAT WE HAVE AN OPPORTUNITY TO

SPEAK REASONABLY FRANKLY TO A SENIOR CHINESE LEADER WHICH SHOULD

NOT BE PASSED UP.

3. DO NOT SEE A READY ALTERNATIVE. THE FACT IS THAT AFTER SIX

MONTH'S WORK, THE JOINT LIAISON GROUP AND THE EXTENSIVE DISCUSSIONS

WHICH TAKE PLACE BETWEEN ITS MEETINGS HAVE ACHIEVED VERY LITTLE. THE

AGREEMENT ON THE RIGHT OF ABODE PACAKGE IS A WELCOME ACHIEVEMENT,

BUT IT HAS BEEN ACHIEVED AT SOME COST: WE HAVE GONE BACKWARDS ON

INTERNATIONAL RIGHTS AND OBLIGATIONS, WE APPEAR TO BE MAKING LITTLE

HEADWAY ON THE GATT, AND AT THE SAME TIME CHINESE STATEMENTS ON

THE DEVELOPMENT OF REPRESENTATIVE GOVERNMENT HAVE CAUSED SERIOUS

CONCERN IN HONG KONG. DO NOT SUGGEST THAT THE JLG IS ITSELF

RESPONSIBLE FOR ALL DIFFICULTIES, BUT THE FACT IS THAT IF WE

CONTINUE TO HANDLE HONG KONG ISSUES WITH CHINA AT THIS PACE AND

IN THIS MANNER, THERE IS A SERIOUS RISK OF AN EROSION OF CONFIDENCE.

CONFIDENTIAL

(371)

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