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LADY HOWE'S BREAKFAST WITH SIR Y K PAO, 8 DECEMBER 1986

Brief Points to Make

Death of Sir E Youde

1. Geoffrey and I both shocked and deeply saddened by death of Sir

E Youde. Tragic loss to Hong Kong people. Obviously important to carry on his good work, guiding Hong Kong towards a smooth transfer

of sovereignty in 1997.

2.

(Defensive: Successor?) Too early to say. Meanwhile fully

confident that David Akers-Jones will do an excellent job as Acting

Governor.

1987 Review: Direct Elections

3. Your daughter, Anna, kindly sent me a copy of Helmut Sohmen's

LegCo speech on 5 November. Grateful. Clearly a strongly argued case against direct elections. However, sure you will agree that it is important for Hong Kong confidence that next year's review is a genuine one. It must therefore include direct elections issue.

Also important that HMG and HKG are not seen as

as having prejudged

outcome either way.

Inauguration of Ningbo University, China

4. Glad George Walden was able to attend inauguration of Ningbo

University on 26 November. Creation of University plainly a personal triumph for you. Gather George Walden was much impressed by what he saw. Mr Walden also noted that HMG might be able to help with educational materials, books etc and we are looking into this.

5.

Ningbo students will presumably qualify under new Sino-British Scholarship Friendship Scheme. Provide excellent basis for closer educational cooperation between Britain and China.

Ningbo Steel Project

6. (Defensive:

HMG financial support - "soft loans" for Ningbo

Understand you are seeing Paul Channon during current visit. No doubt you will discuss position with him.

steel project?)

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