Mr Ham

CONFIDENTIAL

12011/2

HECHIVED IN REGISTRY

29 JAN 1987

NOTICER

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PA

Son Taken

(40

FROM:

David Wilson

DATE: 26 January 1987

Done

Cafte

is

HONG KONG: THE 1987 REVIEW

1. At the dinner last night with the Chinese Ambassador which we both attended, I raised the subject of the 1987 Review saying that this year was going to be a difficult one to handle because of the inter-relationship between the 1987 Review and the Basic Law drafting process. (Mr Hu helpfully said that each year was likely to bring its own difficulties!)

2. I said that, with skill and careful quiet co-operation the problems should be possible to manage. I was anxious not to see a divergence between what came out of the Review exercise and the draft Basic Law. One point which concerned me was that the timing for drafting the relevant sections of the Basic Law seemed to be slipping: furthermore, there were indications that the first draft might come up with alternatives rather than a clear view. Under the original plan of a first draft of the political seciton in the summer, the conclusion of the Review exercise would have been easier to manage. Now, with the drafting of that section apparently put off until December, and with the possibility of alternatives rather than a clear view in the draft, the conclusion of the Review was going to be very much harder. I urged the importance of sticking to, or accelerating, the timetable and of coming up with a clear view in the draft. Mr Hu took note. In reply to his questions about the timing of launching the Green Paper, I said that no decision had yet been announced or taken but that my own view was in favour of a launching towards the end of May since I myself would only arrive in early April. On the end of the exercise, and in response to his assumption that this would be before the end of the year, I said that no decision about the timing for publication of a Green Paper had been taken. It was presumed that this would occur about the end of the year. It might be desirable to slip into early 1988 but this would depend on a number of factors.

3. We discussed Hong Kong views on direct elections. I agreed that opinions were divided. My own impression was that a majority favoured some, but only a few, directly elected seats. Somewhat to my surprise, he agreed. I said that my own personal view was against rapid or drastic change: development should be gradual and incremental.

Ps/fr Renter

Dr Gillmore

Si D thes- Jmes Way kay

David Wilson

Si R. Eroman

Peking

CONFIDENTIAL

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