CONFIDENTIAL

(g) BASIC LAW

A number of Noble Lords have referred to the drafting of

the Basic Law.

This is clearly a matter for the Chinese Government, but

they have made it clear that the views of the people of Hong Kong will be solicited on a wide basis and that the

Basic law will be promulgated no later than 1990. The

mechanics of this consultation are not year clear, but we

welcome the fact that the Chinese Government have

expressed the intention to consult Hong Kong opinion.

CONFIDENTIAL

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