CONFIDENTIAL

VIII) Basic Law.

IX) Joint Liaison Group.

X) Civil aviation:

Dragonair Airlines (DAL).

(This brief has been agreed with the Department

of Transport, but DTP

DTP are also working on a

brief for Sir Y K's meeting with Mr Ridley

on

19 March, and may wish to amend the present

brief as they think things through.)

XI) Ningbo Steel Project.

2.

Most of these briefs are for

raises the subjects concerned; but

use only if Sir Y K Pao

i t would be very

useful

i f the Secretary of State could get across to Sir Y K the

point made in the first brief, on representative government,

that i t i s important for our informal dialogue with the

Chinese on this subject to be a two-way affair: we need to

know as much as possible, and as early as possible, about

how Chinese thinking on this is developing, especially in

the context of their drafting of the Basic Law. Sir Y K Pa o

might be asked to suggest this thought in Peking. On the

scholarship fund, it would be useful if the Secretary of

State could Sound out Sir Y K on the latest Chinese

position, to assist in briefing the Prime Minister for her

meeting with him on 21 March.

3.

I also attach personality notes on Sir Y K Pao and

Mr Li Ka Shing, and a record of a conversation at the Chief

Secretary's lunch with Sir Y K on 28 February.

4.

As well as the meetings with Mr Ridley on 19 March and

the Prime Minister on 21 March, Sir Y K Pao is having lunch

with Mr Renton, also on 20 March. We have been asked to

supply briefs for these meetings.

useful if you could let me know as soon as possible of any

I t

would therefore be

significant exchanges which the Secretary of State has with

Sir Y K over the weekend.

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