CONFIDENTIAL

If we mak e

no

concessions

DSR 11C

on any of these

proposals,

the Governor of Hong Kong has advised that

there will be an open confrontation between HMG and

the Hong Kong Legislative Council.

not always easily, to come

We have managed,

through the last three

difficult years in Hong Kong, including the period of

the

conclusi on of the

agreement, without such a

to fail n ow would be very

very damaging,

confrontation:

undermine

not least to the Hong Kong Government, and it would

what we have achieved SO far by the

agreement. If we mak e no concessions, the Unofficial

members of the Hong Kong Executive and Legislative

Councils will not give up: they will send a

delegation here to lobby the Prime Minister, and they

will lobby extensively in Parliament against the

Since it cannot be amended in Parliament when

Order.

we put it forward for final approval, they will ask

for its rejection. I therefore think that we need to

consider what concessions might be possible.

The Governor of Hong Kong has advised

the three UMELCO requests, the one which is

strongly is that relating to

endors ement.

that ofe

held most

the

passport

the

other two

If this were met, but

requests were not, it is unlikely that there would be

is

a confrontation between the Legislative Council and

HMG. From this point of view therefore, the crux

the question of the passport endorsement. This is an

where I think that a concession should

area

be

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