JA3AKR

CONFIDENTIAL

HONG KONG

1.

By the closing date of 20 August,

20 August, 64 candidates had been nominated for the 24 LEGCO seats for which elections will be held on 26 September. The Governor has reported that with few

exceptions the candidates have no obvious political colour. is pleased with the number of nominations.

2.

In early August OD (K) accepted the recommendations of EXCO that the Kohima Barracks project be stopped and that the Hong Kong garrison be reduced from five to four battalions in 1987. EXCO will be informed of this decision on 3 September and it will

be carefull explained to the Chinese and Nepalese immediately

thereafter. After allowing a week or two for Chinese and Nepalese reactions, a low-key announcement will be made in London and Hong Kong.

3.

The third meeting of the Sino-British Land Commission took place on 15/16 August. It went very well. Full agreement we reached with the Chinese on legal documentation for land sales

extensions and modifications of lease

lease conditions. The next sale

of land, planned for September, can now proceed as scheduled

4. The Home Office plan to publish the response to the report on Vietnamese refugees by the end of September

to publish the White Paper containing the Hong Kong National Order in Council in early October. Separate submissions on will be put up by the department.

CONFIDENTIAL

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