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CONFIDENTIAL
FM PEKING
TO PRIORITY FCO
TELNO 2394
TOP COPY
Confidential
MKK 02718.
OF 170133Z DECEMBER 86
AND TO PRIORITY HONG KONG
FUTURE OF HONG KONG.
29 DEC 1986
PA
TRY
Andion Taken
1. MR. CALLAGHAN CALLED ON HU YAOSANG ON THE AFTERNOON DECEMBER. I WAS PRESENT. THERE WAS A SHORT EXCHANGE ABOUT HUNG
KONG TOWARDS THE END OF THEIR CONVERSATION.
2. MR. CALLAGHAN SAID THAT HE HAD JUST VISITED HONG KONG. IT WAS MOURNING THE DEATH OF SIR EDWARD YOUDE, WHO HAD BEEN GREATLY RESPECTED. HE HAD FOUND THE BUSINESS COMMUNITY IN RATHER A NERVOUS FRAME OF MIND. INDEED, MANY BUSINESSMEN AND BANKERS WERE AS NERVOUS AS YOUNG MAIDENS''. HE HOPED THAT THE CHINESE GOVERNMENT
WOULD TREAT THEM WITH GREAT TENDERNESS DURING THE YEARS BEFORE 1997. MEANWHILE, HE WAS SURE THAT THE BRITISH GOVERNMENT WOULD COOPERATE
WITH THE CHINESE GOVERNMENT OVER THE DRAFTING OF THE BASIC LAW.
3. HE DID NOT SAY ANYTHING ABOUT CONFIDENCE IN REPLY. HE HAD HEARD
THAT THE PROCESS OF DRAFTING THE BASIC LAW WAS GOING SMOOTHLY. FEI XIAOTONG, MR CALLAGHAN'S HOST AND A MEMBER OF THE BASIC LAW DRAFTING COMMITTEE, CONFIRMED THIS IN ANSWER TO HIS QUESTION. THE DEATH OF
SIR EDWARD YOUDE WAS A SAD EVENT. HE HAD BEEN AN EXCELLENT GOVERNOR.
EVANS
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