CONFIDENTIAL

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MDHIAN 122

5. JOPLING SAID LIAO'S ASSURANCES OF RESPECT FOR THE JD AND BL AND NO CHANGE FOR AT LEAST 50 YEARS WOULD BE REASSURING TO HONG KONG PEOPLE. (LIAO INTERJECTED THAT THESE WERE THE CCP'S VIEWS, NOT JUST HIS OWN). IT WOULD BE HELPFUL IF CHINESE LEADERS COULD SAY THESE THINGS MORE OFTEN IN PUBLIC. LIAO REPEATED THAT DEMOCRACY WAS THE AIM BOTH IN CHINA AND HONG KONG, BUT IT WAS HARD FOR CHINA TO JUDGE HOW FAST TO GO IN HONG KONG WHEN FACED WITH DIFFERENT OPINIONS. HE AGREED MORE COULD BE DONE TO PUBLICISE POLICY ON HONG KONG: THE UK AND CHINA COULD COORDINATE OVER THIS. BILATERAL RELATIONS WERE EXCELLENT AS DEMONSTRATED BY THE JD BUT STILL MORE COOPERATION WAS NEEDED TO ENSURE A SMOOTH TRANSITION IN HK WHICH WOULD BENEFIT CHINA TOO.

6. HOWELL CONCLUDED THAT WHILE HK WAS NOT THE ONLY ISSUE BETWEEN BRITAIN AND CHINA IT DID LIE AT THE CENTRE OF THE FASTEST-GROWING REGION OF THE WORLD FOR THE 1990S. IT COULD BECOME NOT A PROBLEM, BUT QUOTE A BUCKLE THAT BINDS OUR COUNTRIES UNQUOTE, BRINGING BENEFITS TO ALL.

DONALD

YYYY

DISTRIBUTION

52

ΜΑΙΝ

49

.HONG KONG AGREEMENT

. (RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD

PS/LORD GLENARTHUR

PS/MR EGGAR

MR GILLMORE

MR MCLAREN

ADDITIONAL

3

MR EDWARDS LEGAL ADVISERS

MR WHOMERSLEY LEGAL ADVISERS

MR FIFOOT HKD

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CONFIDENTIAL

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