*

JUMADU 12/

CUNT IDENTIAL

Make clear to Chinese that Hong Kong opinion is strongly opposed to

stationing PLA troops in Hong Kong:

Have diedy domen Cloreze cultiution to Müze conceus

But in the exert

Agreed. But Chinese likely to insist on some military presence in Hong Kong as sign of sovereignty.

Amendments to Basic Law should have agreement of Standing Committee of NPC, of LegCo and of Chief Executive of SAR before submission to

NPC:

Objective worth pursuing.

(At present only proposals from Hong

Kong so restricted. No such restrictions in present draft on proposals made by NPC itself).

ACTIONS WITHIN HONG KONG

Remain convinced that best future for people of Hong Kong lies in Hong Kong and that the best guarantees for that future are continuing economic success of the territory and strong and stable

democratic institutions:

Agreed.

Hong Kong Government must take this opportunity to establish in advance of 1997 the institutions and systems best designed to guarantee Hong Kong's future autonomy and stability:

Agreed.

Decision to go ahead with construction of a second airport should be

taken as soon as possible:

This is a matter for Hong Kong Government.

This will be

They expect to

announced a decision in October in the Governors's speech to Leg. Co.

(on '11)

CONFIDENTIAL

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