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CONFIDENTIAL

SECRETARY OF STATE'S MEETING WITH MR GERALD KAUFMAN, 1800, THURSDAY

8 FEBRUARY

BACKGROUND

NATIONALITY

1. Mr Kaufman recently wrote to the Secretary of State about the question that he asked in the House following the announcement of the nationality package for Hong Kong. A copy of Mr Kaufman's letter and our suggested draft reply are attached. The Secretary

of State may wish to amplify the points in his reply when he sees

Mr Kaufman on 8 February.

DEMOCRACY

2.

In an article in The Times on 31 January, Mr Kaufman expressed

He criticised convergence strong support for the OMELCO consensus. with China, which he described as "caving in to Peking and breaking

commitments to Hong Kong".

BILL OF RIGHTS

3. It is not clear whether Mr Kaufman appreciates the issues involved. But he has claimed that a clash with Peking has led to

the Bill being amended or dropped. He seems to share the general perception in the press that the Secretary of State attaches less importance to the Bill than Sir Geoffrey Howe (who initially announced the intiative).

NESAEO

CONFIDENTIAL

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