CONFIDENTIAL
3.
Mr Martin Lee, a member of the Legislative Council, led a delegation to London from 7-10 December to press for introduction of direct elections in 1988. He declined to hold a scheduled meeting with Lord Glenarthur on the grounds that the Minister had agreed to
He meet only the Legislative Council members of the delegation. also wanted to meet the Prime Minister and the Secretary of State. The main point made by the delegation was the (false) allegation that HMG and Hong Kong Government had earlier made a commitment to introduce direct elections in 1988. Line to take: The people of Hong Kong have already had every opportunity to submit their views on this and other subjects covered by the Green Paper. However Lord Glenarthur agreed to meet the LegCo members in view of their special position in Hong Kong. He very much regretted that Mr Lee felt unable to take the opportunity for a discussion with him, the Minister responsible for Hong Kong. No prior commitments was made
to introduce direct elections in 1988.
Hong Kong Stock Exchange
4. Hang Seng index stands at about 2,000, compared with high of about 3,900. This fall of almost 50 per cent rather more than world average. Mrrkets closed for four days after initial fall on Wall Street. Particular problem on Futures Exchange, resulted in two-part rescue package of up to HK$ 4 billion. Mr Hay Davison has been appointed as Chairman of a Commission of Enquiry into the management and operation of the Hong Kong Stock and Futures markets. Line to take: interesting to have views on these developments. Hong Kong Government have acted energetically to identify underlying problems and re-establish Hong Kong's good reputation as a financial centre. (If questioned) Selection of Mr Davison was matter for Hong Kong Government.
Implementation of the Joint Declaration (JD)
5.
Implementation continues well.
Much progress is being made. Co-operation over Hong Kong's future lies at heart of present close and cordial relationship between UK and PRC. Many contacts between the two sides at various levels (Ministerial and official). Important steps in recent months:
CONFIDENTIAL