CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG TO PRIORITY FCO
TELNO 1359 (96
OF 01090OZ MAY 89
INFO PRIORITY PEKING, UKREP JLG HONG KONG
FINAL PART OF TWO
ARTICLE 106 AND 107: ECONOMIC POLICIES
96
025266
MDLIAN 7352
TOP COPY
HKB0127
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· 4 MAY 1989
:
13. ARTICLE 107 AS REVISED SEEMED TO BE ACCEPTABLE. PEOPLE WERE DIVIDED ON 106. I HAD SUGGESTED TO ZHOU NAN THAT 106 SHOULD BE REVISED IN THE SAME MANNER AS 107. LU AGREED WITH THIS APPROACH. THE SPECIFIC WORDING NEEDED FURTHER CONSIDERATION BUT THEY WOULD TRY TO GUIDE THE DRAFTING PROCESS IN THE RIGHT DIRECTION.
MY RESPONSE
14. I THANKED LU PING FOR THIS DETAILED ACCOUNT. IT WAS REGRETTABLE THAT ARTICLE 106 WAS STILL A PROBLEM BECAUSE OF THE VIEWS OF SOME HONG KONG DRAFTERS. ALSO THAT SOME PEOPLE REFUSED TO DISCUSS THEIR VIEWS WITH THE DRAFTERS: THIS WAS A WASTED VOTE''.
POLITICAL STRUCTURE
15. MY ADVICE WAS THAT THE CHINESE SHOULD NOT/NOT LEAVE LONG TERM DEVELOPMENTS VAGUE UNDER THE BASIC LAW IN THE HOPE THAT THESE COULD BE DECIDED LATER. TO DO SO WOULD CREATE CONTINUING CONTROVERSY. I HAD GIVEN ZHOU NAN MY THOUGHTS ON WHAT CHANGES WOULD, IN MY JUDGEMENT STAND THE BEST CHANCE OF WINNING GENERAL APPROVAL. (LU ACKNOWLEDGED THAT HE WAS AWARE OF THESE VIEWS). THE DRAFTERS WOULD FACE SOME CRITICISM WHATEVER THEY DID. THE OBJECTIVE SHOULD BE TO FIND A WAY FORWARD WHICH SECURED WIDE SUPPORT IN HONG KONG AND HELPED TO PRODUCE A FAVOURABLE REACTION INTERNATIONALLY, THUS PROMOTING INVESTMENT. IT WAS DOUBTLESS TRUE THAT NOBODY COULD BE CERTAIN WHAT THE SITUATION WOULD BE IN MANY YEARS' TIME. BUT A KEY OBJECTIVE SHOULD BE TO ENSURE THAT THE SAR STARTED ON THE BEST POSSIBLE FOOTING.
16. CERTAINTY NOW WAS MOST IMPORTANT. OTHERWISE DESTRUCTIVE ARGUMENTS WOULD CONTINUE FOR THE NEXT 8 YEARS. I APPRECIATED THAT THE REFEREN- DUM PROPOSAL WAS INTENDED AS A LIBERAL GESTURE: BUT IT HAD INFACT
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CONFIDENTIAL