CONFIDENTIAL

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SECRETARY OF STATE'S LUNCH WITH THE CHINESE AMBASSADOR

HONG KONG

Points to make

I HRB Olli

14 FEBRUARY

15 FEB 1988

White Paper decisions on direct elections subject of vigorous

debate in House of Commons.

Differences of view, in London and in Hong Kong, mean that future

action on Hong Kong will be subject to closer scrutiny than ever.

-

Look forward to reviewing developments in Hong Kong with Foreign

Minister Wu. In particular, wish to take forward dialogue on

formation of first SAR Government.

for first SARG

We continue to have strong misgivings about current arrangements/ annexed to Basic Law, which would not be conducive to continuity. Hope these might be dropped from first draft, and issues considered

with us in slower time.

CONFIDENTIAL

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