From the Private Secretary

Den Reti

CONFIDENTIAL

DIEL

ET MON

DROIT

10 DOWNING STREET

HKK

61

Mr Galsworthy (HKD)

OTO/15 040/15

« PERISTRY

-7 JUN 1985

PS

PS / Mr Luce Sir W. Harding Dr Wilson --Mr Elliott (FED) 5 June 1985

Mar Houston

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PRIME MINISTER'S MEETING WITH SIR Y.K. PAO

CR Sudd

The Prime Minister saw Sir Y.K. Pao briefly this morning.

Sir Y.K. said that he thought that the Chinese would press us strongly for soft loans to finance major projects including the Ningbo steel plant. They need not be very soft. He thought that our prospects of getting business depended crucially upon this.

Sir Y.K. said that he had recently about a week ago had dinner with Deng Xiaoping and his family. He had found Deng Xiaoping on good form.

Sir Y.K pressed the Prime Minister hard on whether Zhao Ziyang had given any commitment to include Hong Kong people in the drafting committee for the Basic Law and whether he had mentioned the establishment of a consultative committee in Hong Kong. The Prime Minister said that Zhao Ziyang had made plain that ways would be found to take account of opinion in Hong Kong but had said that it was for the Standing Committee of the National People's Congress to decide on the precise mechanism. Sir Y.K. said that he had offered to serve on any appropriate committee.

516

I'll bet!

ཀརྨ་ཛི

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(Charles Powell)

Peter Ricketts, Esq.,

Foreign and Commonwealth Office.

CONFIDENTIAL

Mr. Elnagh Русе Jn. Parce

Letakk

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