DSR 11C (Revised 5/87)
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We cannot of course add anything to what Dame Lydia
already knows about the size and content of the package
or the timing of an announcement. The Prime Minister
has previously explained to her that the package will be
as generous as possible within the practical and
political constraints; and that it will cover both the
public and private sectors. On timing, she has explained
that it would not help Hong Kong to rush an announcement
of the package before we had got the details right. The
Prime Minister may wish to confirm that an announcement
is not imminent. The Foreign and Home Secretaries intend
to submit a further paper for discussion by OD (K) on 26
October. We are aiming for an announcement after The
Prince of Wales' visit on 7-10 November and before the
Foreign Secretary's visit to Hong Kong in the New Year.
The Prime Minister might add that following the events
of 3/4 June we have been very active in international
fora on Hong Kong's behalf, stressing that Hong Kong's
continued success is in the interests of the entire
international community and that Hong Kong needs
international understanding and support. We intend to
make the same points at CHOGM next month.
On democratisation in Hong Kong, Dame Lydia may refer
to the proposal, recently put forward by OMELCO, that the
proportion of directly elected seats to Legco in the 1991
elections should be increased to 20 (current plans are
that there should be 10 seats).
The current draft of the