21.

22.

CONFIDENTIAL ##

10 -

taking on more Prime Ministerial functions. In answer

to CS's question, PA said that a Zhao/Li leadership

would be a balanced one. It was too simplistic to see Li as a pro-Moscow conservative. On implications for

Hong Kong, PA said that the Chinese were well aware of

the need to maintain confidence, but were likely to

stick firmly to their positions on such matters as the

political review.

S for T enquired about rumours that Li Hao would

replace Xu Jiatun. PA thought this unlikely, noting

that Xu appeared confident and very much in charge of

NCNA.

STI suggested that it would be useful if Secretaries could be provided with a couple of paragraphs on a

"line to take" on the situation in China. They were

often asked for their views, particularly when on

speaking engagements overseas.

note, which would be along the lines of "welcome

Chinese reassurances that their policies would not

change; note that the Chinese are well aware of Hong

PA agreed to provide a

Kong's sensitivities". It would not be appropriate to

comment in depth on China's internal developments.

Action: PA

REQUEST BY THE SHENZHEN AUTHORITIES TO PERMIT PRC GOODS

VEHICLES TO ENTER HONG KONG (PAPER 6/87)

23.

The meeting agreed with the paper's recommendation

that the Shenzhen authorities be informed that we

needed more time to study the implications of their

proposal.

Action: PAS(S)OR

G.F. 326

CONFIDENTIAL #3

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