CONFIDENTIAL
DINNER GIVEN FOR SECRETARY OF STATE AND LADY HOWE BY THE
CHINESE AMBASSADOR AND HIS WIFE: WEDNESDAY 25 JANUARY 1989
POINTS TO MAKE
HONG KONG
(a) Basic Law
Ambassador will have seen recent spate of critical press comment
on Hong Kong, particularly on Basic Law and Hong Kong's future
political structure. Critics have generally overlooked significant progress made in other areas of the draft. Hope that ways can be
found to present a more balanced picture.
On future political structure, understand difficulties faced by
Chinese authorities and need to reconcile divergent views in Hong
Kong. But sure that Chinese understand that political chapter is
one by which Basic Law as a whole will be judged. Essential to get
it right.
Note that senior Chinese drafters have acknowledged that present
model is too conservative and that further amendments can be made to
take account of Hong Kong views. Welcome this.
Economic policy provisions still a source of concern in Hong
Kong. As former Chancellor of Exchequer, I entirely understand the desire for balanced budgets and low taxes. But incorporation of these provisions in a way which made them justiciable would undermine autonomy of Hong Kong SAR. Hope that a satisfactory
solution can be found.
Value our confidential contacts with Chinese about drafting of
Basic Law. Hope that these can continue.
CONFIDENTIAL