OUT TELEGRAM

(CONT)

Classification

CONFIDENTIAL

Caveat

Precedence

IMMEDIATE

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A general summary of the events of the year, beginning with the implementation of the Joint Declaration and the

work of the Joint Liaison Group and Land Commission and

going on to take in the most important departmental

summaries prepared for your annual address;

An explanation of constitutional development in the

territory;

A brief account of the state of Hong Kong's economy; A look at the coming year;

A conclusion about confidence in the territory.

The inclusion of a section on Hong Kong's economy would obviate

the need to annex the Financial Secretary's budget speech or his

half yearly economic review to the report, although these could

be laid in the Library of the House. The only annex to the

report would then be your annual address.

We should need to rely on you for a first draft of this,

and we appreciate that would involve more work for you in Hong

Kong than originally envisaged. We would be grateful to have

your reactions to the proposed format. There would inevitably be

considerable overlap with your annual address, but we do not

believe that this can be avoided.

If it was possible to produce such a report and let us

have it by early November we could aim to publish it as a White

Paper in the Miscellaneous series in early December.

publish it simultaneously in Hong Kong.

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HOWE

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You could

We would be content for you to be here for the

publication of the report, and think it might be useful if you

could speak to the

to the Anglo-Hong Kong Parliamentary Group.

For distribution order see Page 3 Catchword:

ΜΑΙΝ

XY 48A (REV)

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