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A Laye tely In This
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Mr Hám, HKD
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- 2 MAY 1987
PS
NK DARROCH
6 May 1987
Mr Gillmore
Mr McLaren
Mr Masefield, FED
MR RENTON'S LUNCH WITH SIR Y K PAO
The following were the main points from Mr Renton's lunch today with Sir Y K Pao.
1.
He
2.
Sir Y K Pao spoke strongly, but on predictable lines, about the need for caution over Hong Kong's future. Any changes that were necessary should take place slowly. thought Sir S Y Chung's recent remarks had been "very sensible". Mr Renton dissented gently, particularly in relation to Sir S Y Chung's remarks on direct elections, but added that we recognised it as inevitable that Exco members who were also in Legco should wish to express their personal views about the 1987 Review. This prompted Sir Y K Pao to speak along standard lines about the Green Paper; he did not himself see any real need for direct elections and any move in this direction should be very cautious.
3. Sir Y K Pao then commented on the Chinese internal situation. Deng Xiaoping had re-established himself at the centre of the Chinese leadership. Hu Yaobang had been removed because it had been recognised that certain personality defects made him unsuited to lead China. He was "too violent and demonstrative" and too prone to expansive physical gestures, a habit he had picked up from his time as a youth leader.
He
4. On China-Hong Kong relations, Sir Y K Pao suggested that Hong Kong was an increasing influence on the neighbouring area of China. The Chinese, in his view, "believed in socialist/Marxist politics but in a capitalist economy". also thought that the time had come for the Hong Kong dollar to be divorced from the US dollar.
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N K Darroch PS/Mr Renton
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