GR$ 300

Hei

166/1

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TOP COPY Q DIST ?

566

CONFIDENTIAL

FM PEKING

TO DESKBY 291200Z FCO

TELNO 1560

OF 290728Z AUGUST 86

INFO IMMEDIATE HONG KONG

INFO PRIORITY PARIS

YOUR TEL'S TO HONG KONG NUMBERS 1833/34:

DAYA BAY.

1. I CALLED ON MEI ZHAORONG AT 1500 ON 29 AUGUST ACCOMPANIED BY

COMMERCIAL COUNSELLOR AND CALDER, AND SPOKE AS INSTRUCTED IN YOUR

TEL TO HONG KONG NUMBER 1834 (AMENDED BY HONG KONG TEL. TO PEKING

NUMBER 202), BUT WITHOUT RECOURSE TO PARAGRAPH 2. I LEFT A COPY OF MY SPEAKING NOTE.

2. MEI THANKED ME AND UNDERTOOK TO REPORT THE MESSAGE WITHIN THE

MFA AND TO VICE MINISTER ZHOU PING (NUCLEAR INDUSTRY) AND VICE PREMIER LI PENG. THE CHINESE WOULD GIVE THE MATTER URGENT ATTENTION

AND REPLY AS SOON AS POSSIBLE.

HE ASKED TWO QUESTIONS.

FIRST HE WISHED TO CLARIFY THE STATUS OF THE LEGCO MEETING ON 3 SEPTEMBER - IF THE CHINESE SIDE DECIDED TO DEFER SIGNATURE UNTIL LATE-SEPTEMBER, WHAT WOULD HAPPEN TO THE 3 SEPTEMBER MEETING ?. I EXPLAINED THAT THIS WAS MERELY AN IN-HOUSE MEETING TO DECIDE THE NEXT STEPS. IT WAS VERY DESIRABLE, INDEED VIRTUALLY ESSENTIAL, THAT THE CHINESE SHOULD ENABLE S L CHEN TO SAY SOMETHING ABOUT THEIR

INTENTIONS ON DATE FOR SIGNATURE AT THE 3 SEPTEMBER MEETING. I THEREFORE ASKED FOR A CHINESE REPLY TO MY APPROACH, IF POSSIBLE ON 1 SEPTEMBER.

3. MEI ALSO ASKED FOR MY ESTIMATE OF THE LIKELIHOOD OF A DAMAGING OR HOSTILE DEBATE. EMPHASISING THAT THESE WERE MY PERSONAL IMPRESSIONS FOLLOWING MY BRIEF VISIT TO HONG KONG LAST WEEK, I SAID THAT I UNDERSTOOD THAT 3 OR 4 MEMBERS OUT OF AROUND 50 WERE PRESSING FOR A VERY EARLY DEBATE. THE REMAINING MEMBERS HAD NOT DECLARED THEIR ATTITUDE. THE HONG KONG GOVERNMENT DID NOT WISH A DEBATE TO TAKE PLACE, PERHAPS NOT AT ALL, BUT CERTAINLY NOT UNTIL AFTER THE VISIT OF UMELCO MEMBERS TO PEKING.

CONFIDENTIAL

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