PRIAVL

CONFIDENT I AL

SIR Y K PAO'S CHEVENING WEEKEND: 13-14 SEPTEMBER 1986

(a) Hong Kong: Representative Government

Points to Make (Defensive)

Pace of Constitutional change/Direct Elections

1. We are of course proceeding cautiously. But must be seen to respond to Hong Kong public opinion if during 1987

Review a consensus emerges on direct elections. Plainly cannot seek to prejudge outcome of review.

Discuss with Chinese?

2. Already engaged in infernal exchanges with Chinese on question of convergence between existing and post-1997 political systems for Hong Kong. Important to all concerned that this dialogue should continue and develop as a genuine exchange of views.

Future Chief Executive? Means of Election ?

3.

shall need to

On e of the issues of convergence we

consider carefully with Chinese. Who does Sir Y K see as a

candidate acceptable to all sides?

CONFIDENTIAL

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