CONFIDENTIAL

VISIT OF THE LORD GLENARTHUR TO HONG KONG: 29 JUNE 1 JULY 1988

BRIEF NO 5: BASIC LAW

Objectives

To assess the mood in Hong Kong two months after the

publication of the draft Basic Law for consultation.

1.

2. To reassure Hong Kong opinion that HMG will draw local concerns

about the draft to the attention of the Chinese Government, and in

particular will make representations about any aspect which fails to

reflect accurately the provisions of the of the Joint Declaration.

Points to make

GENERAL POINTS

[For use with Governor, officials, ExCo]

[Report on exchanges in Peking]

Assessment of current mood in Hong Kong?

We will do all we can to press for improvements in draft where

we perceive defects. Variety of channels available. Hope further contacts between legal experts, perhaps in August, will prove

fruitful.

House of Lords debate was helpful in placing on record

concerns in Hong Kong and Parliament about certain aspects of Basic

Law. Particular worries about degree of autonomy Hong Kong will

enjoy, and about relations between SAR and central Government in

legislative and judicial matters (Articles 16, 17, 18 and 169).

have passed Hansard record formally to Chinese Government, and

encouraged them to give most serious consideration to points raised.

Likely that there will also be debate in House of Commons

before summer recess. No doubt this will perform similar useful

function.

We

Many MPs likely to take cue from Martin Lee and "liberals". We

share general aim of securing best possible Basic Law for Hong Kony.

But at end of day must restrict ourselves to what is negotiable.

CONFIDENTIAL

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