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CONFIDENTIAL

Sceators of State

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From:

A R Paul

Hong Kong Department

HKB 020/14

Date: 23 May 1989

Private Secretary

lowili

CC:

PS/Lord Glenarthur

Mr Gillmore

Mr McLaren

Mr Millington, FED

DEVELOPMENTS IN CHINA: IMPACT ON HONG KONG

1.

It is too early to assess the likely impact on Hong Kong of

developments in China. But the Secretary of State might appreciate preliminary thoughts. He will in particular wish to see Hong Kong

telnos 1680 and 1681, reporting the latest reactions in Hong Kong

and the mood of EXCO.

2.

The main events in Hong Kong relating directly to the

situation in China have been:

(a) Street demonstrations

Despite typhoon conditions, some

500,000 people demonstrated on 21 May in sympathy with the Peking

students. The scale took many people by surprise. It probably reflected principally a desire to demonstrate solidarity with fellow Chinese rather than specifically Hong Kong concerns. The numbers involved were of course considerably larger than those of any pro-democracy demonstrations that have ever taken place in Hong

Kong.

There

(b) Resignations from the Basic Law Drafting Committee

have been two resignations from the BLDC: that of Louis Cha

(Co-Convener of the Special Group on the Political Structure)

and Bishop Kwong (who occupies a place in the middle of the political spectrum). It is Louis Cha's resignation which has

attracted the most attention. He is a leading proponent of the

CONFIDENTIAL

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