HKB 011/3

CONFIDENTIAL

FAC file pl.

179

PS/Lord Glenarthur

Miss Marion

Mr Forman

N413

Mr Wood & 20/20/17/2

Mist Dict

Enter +pe.

FROM: D H Gillmore

CC:

W37 270 2156

14 March 1989 PS/Mr Eggar

Mr Teasdale

Mr McLaren or

Mr Holt, PRU

Mr Millington, FED

Mr Whithead, News Dept

[FOREIGN AFFAIRS COMMITTEE ENQUIRY INTO HONG KONG: SECRETARY OF STATE'S EVIDENCE, 22 MARCH 1989]

1. The Secretary of State is holding a meeting on 16 March with Hong Kong Department to discuss this briefing material. Much of it picks up and elaborates points made by the Secretary of State to members of the FAC at an informal briefing on 8 March.

2. I commend the suggestion in paragraph 5 of Mr Paul's submission that we offer the Committee an off-the-record background briefing by officials. By specifying in advance the areas to be covered (essentially our views on the draft Basic Law and, in particular, how we intend to deal with the Chinese on the remaining difficulties and deficiencies), we may be able to steer the Committee away from difficult terrain when they take evidence on 22 March.

3.

Although, vis-à-vis the Chinese, the Basic Law is the most sensitive topic, we may in the event have less difficulty on this with the FAC than on, for example, the nationality question and Vietnamese Boat People.

4. On specific points in the briefing material:

a.

b.

c.

In line with my comments above, it seems right to be dead- pan in comments in open session on the Basic Law. We obviously want to highlight the improvements in the second draft. On the future structure of Government, I think Mr Paul is right merely to draw attention to differing views in Hong Kong on the referendum requirement and the attached conditionality.

On Articles 106 and 107, we are on safer ground, since we can base comment on the question of compatibility with the Joint Declaration (particularly in the case of Article 106).

On human rights, I wonder if it is sensible to suggest that, before 1997, the PRC may become a party to covenants which will also include Hong Kong. This could be a hostage to fortune.

CONFIDENTIAL

/d.

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