میں Alm huara
CONFIDENTIAL
FROM:
D C Wilson
Mor Leeting
1/4
214
to we
To The
сра
Mr Layden, HKD
apa 82411
LUNCH WITH SIR Y K PAO, 21 MARCH
1.
DATE: 21 March 1986
CC: FED
I had lunch today with Sir Y K Pao. The only other person present was Mr Stephen Pan. The following are the only points worth recording:
- 3 APR 1986
VED IN REGISTRY
HKK 01012.
*** OFFICER
ទុកសរ
PA
REGISTRY
Action Taken
AjB 310
i)
Scholarship scheme. Sir Y K said that he was very happy with developments. The general line of the draft Memorandum seemed fine. He would discuss matters further with the Chinese when he was in Peking in April and would be accompanied by Mr Johnson from the Embassy. Later, Mr Pan told me separately that, since HMG were contributing by annual amounts, he thought it would be simpler if the other two sides did the same.
ii) Dragon Air. I asked how things were going,
saying that Sir Y K would doubtless find that running an airline was much more complicated than running ships. Sir Y K agreed heartily. In conversation I made the point strongly that it was essential that the Chinese should carry out their obligation to let Cathay Pacific onto the Peking route as agreed between the two governments. CAAC had been playing very hard to get on this and other matters. Sir Y K thought there would be no problem about Cathay starting on the Peking route. On CAAC he said that the senior management was now being reorganised. He complained that Hong Kong Civil Aviation had still not given him permission to run a charter flight to Peking to transport the Basic Law drafting committee. They had said that this could be "discussed" when Cathay had started their service to Peking. I said that Hong Kong were entirely autonomous on such matters: doubtless they were by now very fed up with CAAC.
iii) Representative government. Sir Y K said that
he had always been against direct elections. While agreeing that they certainly brought some problems, I said it was essential for the matter to be floated in the 1987 Review: the Hong Kong Govenment were committed so to do. If there was a clear public demand for some degree of direct elections, then the Hong Kong Government would doubtless feel it necessary to respond. The worst scenario would be for the Chinese then to attempt to interfere. Sir Y K said he thought the Chinese would understand this. Informal dialogue was important. I said we were making reasonably good progress with establish- ing informal dialogue in Hong Kong on such matters.
CONFIDENTIAL
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