[GSLAVV]
CONFIDENTIAL
CALL ON MR RENTON BY SIR S Y CHUNG
11 A.M., 11 JUNE 1986
BACKGROUND
HONG KONG
B
I
General/Future:
1. The anxieties in Hong Kong of six months ago seem to
have subsided to some extent, although as the Governor has
often reminded us they remain
remain very much alive just below
the surface (see his telno 1767 attached). The Hong Kong
Stock Market remains buoyant: the recent Cathay Pacific
share flotation was 55 times oversubscribed. Land sales
have largely recovered from their 1982-4 slump: the last
remaining lot on the Victoria Barracks site was sold for a
record price.
2.
JLG III met in Hong Kong between 11 and 14 March and
made good progress on GATT and Hong Kong travel
documentation: the Chinese were on their best behaviour for
a Hong Kong audience. JLG IV meets in London between 22
and 25 July. An agenda has yet to be finalised.
II Structure of Government
3.
in
The Secretary of State met Foreign Minister Wu Xueqian
Brussels on 23 May and handed over three Hong
Hong Kong
papers covering the present system of Government
in Hong
Kong, the problem of convergence and the present state of
Hong Kong opinion on constitutional development in the
light of the 1987 review. Wu replied that the Chinese would examine these papers carefully.
CONFIDENTIAL