CONFIDENTIAL

VISIT OF SIR Y K PAO, MAY 1987

Background

A.

REPRESENTATIVE GOVERNMENT.

The Secretary of State is familiar with current developments.

Sir 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.

1.

B.

FUTURE CHIEF EXECUTIVE MEANS OF SELECTION

2.

Sir Y K has previously expressed interest in how a "Chief

Executive designate" might be grafted on to the HKG system before

1997.

We assume he is unaware of the Secretary of State's recent

discussions with Wu on this subject, in which the Chinese expressed

a cautious welcome to our ideas on introducing a CE designate by way

of a deputy governor in due course. So far as we are aware, the

BLDC has yet to focus on this issue in any coherent way.

C.

NEW GOVERNOR

3.

Sir D Wilson was appointed Governor in succession to Sir E

Youde on 16 January and formally took up his appointment on arrival

in Hong Kong on 9 April.

D.

BASIC LAW

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

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

4.

CONFIDENTIAL

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