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CONFIDENTIAL
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clear that the SAR
legislature shall be constituted by elections (and not through consultation).
4.
These remarks are most unhelpful. The Hang Seng Stock Market index fell 50 points in Hong Kong in the
course of today and the Governor's view, which is no doubt
correct, is that this storm is unlikely to die quickly.
5.
I discussed with Dr Wilson, who is at present in Hong
Kong before travelling to Peking for next week's
week's meeting
of the Joint Liaison Group, whether the Embassy in Peking
should formally express ou r displeasure to the Chinese,
given that this i s the first ti me that either side has
publicly accused the other of not sticking to the
agreement. Dr Wilson's view, which he confirmed was also
the view of the Hong Kong Political Adviser, was that we
should not over-react. Mr Xu's remarks had not been part
of the prepared statement which he read ou t at the beginning of the conference but had been delivered at the
end in response to questions.
He proposed that the Embassy should
nevertheless express surprise at Mr Xu's remarks.
6.
After consultation with Mr Renton, we sent the attached telegram to Peking. As you will see, in addition to instructing the Embassy to express surprise at Mr Xu's remarks, it instructs Dr Wilson to repeat the point during JLG discussion. It also instructs him to pick up Mr Xu's
remark that the
the future SAR legislature might be formed by
"consultations".
THIS IS A COPY
THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. 27(1)
22 November 1985
L.c. Chum
W G Ehrman
Hong Kong Department
CONFIDENTIAL