CONFIDENTIAL

Background

3.

It is now clear, in the light of the Secretary of State's discussions in Peking during the State Visit, that

the Chinese accept and even welcome the informal dialogue

which we have established with them over

issues related to

convergence and the drafting of the Basic Law. We need to

consider how that can best be taken forward. The Governor

ostensibly on other Hong

able to discuss Chinese

papers on convergence. It

will be in Peking in December,

Kong business, and will be

reactions to our second batch of

is helpful if there can always be a further opportunity to

exchange views on the horizon. This reduces the risk that

exchanges on representative government might instead be

chanelled back by the Chinese into the undesirably formal

and, for Hong Kong, politically sensitive framework of the

Joint Liaison Group.

A

4.

B

C D

E

suggested that he

SO during 1987.

In his telno 3502 the Governor has

should visit Peking every three months or

His telno 3516 sets out a full programme of his proposed

Peking and London next year.

travel to

commented

in

Sir R Evans has

his telnos 218 to Hong Kong and 2067 to

ourselves: he is evidently worried about the implications

for his Own position. The Governor has responded in his

telno 3606.

Argument

a) Ministerial contacts with the Chinese

5.

year.

the most important

that between the

A s the Governor acknowledges,

channel for dialogue with the Chinese is

Secretary of State and Wu Xueqian. The Secretary of State

has invited Wu to pay an official visit to Britain next

Wu has accepted: timing and details remain to be

discussed.

Wu told the Secretary of State that he was

likely to

to visit Eastern Europe in the first half of 1987,

and a press report has suggested that this will be in

company with Zhao Ziyang in June or July. It is possible

that this tour could be

combined with a visit by Wu to

CONFIDENTIAL

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