Points to make

Events in China in June had severe impact on Hong Kong people. Now recovering but still a problem of confidence.

Chinese reluctant to accept that their actions are the cause.

Important to keep open channels of communication over Hong Kong. Resumption of JLG work with thirteenth plenary in September a step towards return to cooperation.

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Hope that recent period of public difficulties at an end. Will help confidence in Hong Kong if we and China are seen to be back in dialogue.

Next important development

promulgation of Basic Law in Spring

1990. Will have strong impact on Hong Kong.

No background.

MUKACM

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