DB2ANK

CONFIDENTIAL

SIR Y K PAO'S CALL ON THE PRIME MINISTER: 10 JUNE 1986

Points to Make

HONG KONG

(A)

1.

Implementation of Joint Declaration/Joint Liaison

Group

Making good progress with implementation of Agreement on Hong Kong. JLG has met three times in its first year,

and has accomplished a great deal, notably agreement on new GATT status for Hong Kong.

(B)

Basic Law/Constitutional Government

2.

Chinese consultation with a

with a wide

wide range of Hong Kong

How do you

people on drafting of the Basic Law is welcome.

see progress on drafting so far?

3.

Important that we maintain dialogue with Chinese on

future development of Hong Kong's political system pre- and

post-1997.

4.

(Defensive)

HMG and Hong Kong Government fully conscious of need to develop government system cautiously, and without endangering stability.

(Defensive) HMG and Hong Kong fully committed to 1987

5.

review.

Must

proceed.

Would not wish to prejudice

outcome.

CONFIDENTIAL

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