Mr
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CONFIDENTIAL
Sir S Y Chung
The Secretary of State had a brief meeting with Sir S Y Chung this morning. He told Sir S Y that he had had a good meeting with Wu Xueqian. Sir S Y agreed that it had been a good meeting, and was surprised that Wu had been so receptive. He said that he himself, together with Q W Li and Lydia Dunn, now had regular meals with the Director of NCNA and his Deputy in Hong Kong. The Director had said on the most recent occasion that China would be very concerned about any changes in Hong Kong. He had even admitted rather wryly that in spite of his being a good Communist this concern extended even to progressive labour reforms, such as the long service payment decision. The Chinese were also concerned about action being taken against insider trading. Sir S Y and his colleagues had told the NCNA that if they wished Hong Kong to play in the first division they must accept that Hong Kong needed to play by first division rules.
The Secretary of State said that the Chinese seemed to want to mummify Hong Kong in its present shape, principally because they seemed really to have taken to heart the need to preserve prosperity and stability. Sir S Y said that the influence on the Chinese of the Hong Kong industrialists was considerable. He agreed that the main Chinese motive was a real concern for prosperity and stability. Mr Renton added that the Chinese found it difficult to understand the 1987 review and its implications. Sir S Y said that Zhou Nan had actually suggested that he, Sir S Y, should speak out in Hong Kong to voice his worries on direct elections. It was important to get over to the Chinese that we could not freeze Hong Kong permanently in its present mould.
Атавний
11 June 1986
CC:
PS/Mr Renton Sir W Harding Dr Wilson
(A C Galsworthy)
CONFIDENTIAL