26

GRS, 500

CONFIDENTIAL

CONFIDENTIAL

Hi

HUK 040/12

DESKBY FCO 11113OZ

FM HONG KONG 111010Z FEB 85

TO IMMEDIATE F C O

HKK 040/2

134

TELEGRAM NUMBER 321 OF 11 FEBRUARY

INFO IMMEDIATE PEKING

MIPT : HONG KONG AGREEMENT : RATIFICATION

في

1. I REMAIN OF THE VIEW THAT RATIFICATION SHOULD NOT (NOT) TAKE PLACE BEFORE THE END OF MAY. THE TIMETABLE INDICATED IN PARA 2 OF MIPT, IN RESPECT OF THE HONG KONG LEGISLATION REQUIRED TO MODIFY THE ACCOUNTING ARRANGEMENTS FOR LAND REVENUE, IS ALREADY FAIRLY TIGHT AND CANNOT BE MUCH FURTHER COMPRESSED.

2. BUT, FOR OBVIOUS REASONS, I WOULD NOT (NOT) WISH THE TIME NEEDED BY HONG KONG TO ENACT LEGISLATION TO APPEAR TO BE THE ONLY THING HOLDING UP RATIFICATION (EVEN IF THERE IS SOME SCOPE FOR EXPLAINING TO THE CHINESE THAT THE TASKS HONG KONG IS REQUIRED TO COMPLETE BY RATIFICATION DATE ARE FAIRLY COMPLEX TECHNICALLY, AND NEED CAREFUL PREPARATION). THUS, WHILE I APPRECIATE THAT THE TIMETABLE INDICATED IN YOUR TELNO. 232 FOR THE REMAINING STAGES OF THE HONG KONG BILL IS ALREADY VERY RELAXED, I HOPE IT WILL BE POSSIBLE TO STRETCH IT OUT EVEN FURTHER BY, E.G., POSTPONING THE THIRD READING UNTIL AFTER THE EASTER RECESS.

3. IT IS IN ANY CASE TOO EARLY TO TAKE A FIRM VIEW ON THE TIMING OF RATIFICATION. MUCH WILL DEPEND ON HOW QUICKLY THE JOINT LIAISON GROUP AND THE LAND COMMISSION CAN BE ESTABLISHED, AND THIS WILL IN TURN DEPEND ON THE DEGREE OF DIFFICULTY IN GETTING OUR VIEWS ON COMPOSITION, PROCEDURES, ETC. ACCEPTED BY THE CHINESE. TACTICALLY THERE MIGHT BE MERIT IN HAVING SOME ROOM FOR MANOEUVRE IN OUR TIMETABLE OF PRE-RATIFICATION ACTION SO THAT WE COULD TURN CHINESE PRESSURE FOR EARLY RATIFICATION (IF IT MATERIALISES) TO

OUR ADVANTAGE.

CONFIDENTIAL

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