COLABS

HKB

04014-

"ANY QUESTIONS", 8 SEPTEMBER

HONG KONG

Points to Make

FILE.

Confidence in Hong Kong still bruised.

Doing all we can to

rebuild confidence and demonstrate continuing British commitment to

Hong Kong.

Measures include

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review of programme for democratisation; introduction of Bill of Rights; and package on nationality designed to give assurances to key personnel in both public and private

sectors to encourage them to stay in Hong Kong.

Will continue to emphasise to our friends and partners in the

international community that they have a shared responsibility to

help.

We have already raised Hong Kong's situation on a number of

occasions including the Madrid European Council and the Paris

Economic Summit.

Will resume contacts in JLG later this Autumn. Does not

indicate weakening of general condemnation of China, but recognises

special position of Hong Kong and need to continue preparation for

transfer in 1997.

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Will seek China's cooperation in taking further steps to help rebuild confidence, eg in revising Basic Law to ensure that it commands wide confidence and meets Hong Kong concern.

Not questioning China's right to station troops in what will be

its sovereign territory; but will seek to impress on them value for

Hong Kong's confidence of not doing so in light of PLA's recent

brutality against unarmed civilians.

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Political realities in Hong Kong have changed since 4 June: hope

to reach common understanding of this fact with the Chinese as a

foundation for our further cooperation.

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