CONFIDENTIAL

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15.

Mrs. Rita Fan asked if a 'satisfactory formula' for an endorsement in BN (O) passport was in sight and the likelihood of it being achieved. Mr. Renton re-iterated that he was not privy to detailed thinking since the Lords debate. The LegCo's request for an endorsement in BN (O) passport presented considerable difficulty to the Home Office because of the problems it could cause to UK immigration practice and procedure. Home Office was concerned that there should be no endorsement that would make bona fide visitors think that they had a right of entry into the UK and that the UKG should not mislead people. He very much hoped that a satisfactory solution could be found.

16.

17.

Referring to Mr. Renton's press conference in Peking, Dr. Conrad Lam asked whether Hong Kong would be ruled by Hong Kong people and whether the PRCG was happy with the situation in Hong Kong. Quoting earlier remarks made by Mr. Renton that it should be for Hong Kong people to decide their own political structure, he further asked whether Hong Kong people had to decide within a defined framework.

Mr. Renton replied that, first, he did not get the impression in China that senior Chinese officials were not happy with what was happening in Hong Kong. On the contrary, Mr. JI Peng-fei seemed overall very impressed. Mr. LU Ping was at the very moment conducting extensive consultations on the drafting of the Basic Law in Hong Kong. had every confidence in either side's implementing of the Joint Declaration. There were early days yet but he re-iterated that he felt sure that Hong Kong people, in particular Umelco, would be voicing their views on the 1987 review and that the UKG was responsible for Hong Kong up to 1997.

18.

Second, he

Mr. Desmond Lee said that the Basic Law would be promulgated in 1990 and effective from 1997. Some Chinese officials might ask the UKG, during the run-up to 1997 when the UKG remained responsible for Hong Kong, to refer to the Basic Law to achieve 'convergence' or continuity.

Would any divergent views of Hong Kong people become submerged in the convergence? Mr. Renton said that he could not give hypothetical solution to hypothetical situation. The main purpose of the UKG was to make a success of the Joint Declaration.

CONFIDENTIAL

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