Background

A.

REPRESENTATIVE GOVERNMENT

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1. Sır Y K shares Chinese concerns over the pace of constitutional change in Hong Kong and has in the past sought to reflect these to

Ministers.

B.

BASIC LAW

2.

Sir Y K is one of 8 Vice-Chairmen of the Basic Law Drafting

Committee (BLDC). He does not play a very active part. He has

however been appointed Co-Chairman of the "Basic Law Overall Working

Group" which will be responsible for editing and checking all draft

articles produced by the BLDC's sub-group and producing a

"timetable" version of the entire Basic Law for the seventh plenary

of the BLDC, scheduled for the first quarter of 1988.

C.

CHINESE PARTY CONGRESS

3.

Latest indications are that next week's Party Congress (begins

25 October) will endorse the general direction of China's reform

programme, but without setting out the details. It is still not clear who will be promoted in China's leadership, but the

conservatives are likely to retain considerable influence.

D.

4.

NINGBO UNIVERSITY

Sir Y K Pao has paid for the construction of a University at

Ningbo. Mr Walden, Parliamentary Under Secretary at the Department

of Education and Science, attended the opening of the University

earlier this year. When he called on Mr Patten, on 14 October, Sir

Y K Pao said that he proposed that the university library should be

named after the Prime Minister. The Secretary of State can take this opportunity to offer to supply the new library at Ningbo with

books worth £10,000. It would also be possible for the British

Council to set up a link between Ningbo and an appropriate

institution in this country. (About 100 such links, involving visits and other exchanges, are already financed jointly by the ODA

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