CONFIDENTIAL

Background and Argument

4.

A

B

The background to the meeting with Wu was described in

my submission of 27 March, I submitted then for a

a "first

reading" the papers which it is proposed that the Secretary

of State might give to Wu. These are being revised in the

light of subsequent developments and will be resubmitted in

due course. We have also sent a telegram to Hong Kong and

Peking (FCO telno 765) describing how we see the objectives

and tactics for the meeting and inviting comments.

5.

The subject matter involved is fairly detailed. The

Secretary of State might find it helpful to discuss it at

an office meeting a little in advance of his encounter with

Wu, So as to allow time for any further preparatory work

that is needed.

6.

It would be particularly useful for the Governor to attend that meeting. The subject matter of the discussion

with Wu will cover present administrative practice in Hong

Kong, the changes that might be introduced there as a result of the 1987 review of representative government, and the state of local opinion on the issue in Hong Kong. The Governor is obviously the best qualified to contribute on all these points. Moreover where the drafting of the Basic

Law is concerned the Governor is particularly well placed

(probably better than the Ambassador) to describe the

Chinese approach because of his access to Hong Kong

participants in the Basic Law Drafting Committee and to the

material which they have brought back from the recent

meeting of the Committee in Peking. However it would be

desirable if the Governor's return was not seen

connected too closely with the meeting with Wu. This would

be a little easier if it took place in the week before the

Brussels meeting. His journey to London could then be more

plausibly presented as

a routine visit for consultations,

such as he undertakes every 3 months or so. (The last was

in February.) The State Visit to Hong Kong in October

provides a further pretext.

as

CONFIDENTIAL

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