SECRET
031702
MDLIAN 730€
A DIFFICULT LEGCO DIMENSION TO ALMOST ANY NEW ISSUE. OF COURSE HANDLING THE NEW LEGCO HAS ITS OWN DIFFICULTIES. WE HAVE ALWAYS KNOWN THAT WOULD BE SO. BUT WE CANNOT ALLOW OURSELVES TO BE FRIGHTENED INTO INACTIVITY AS A RESULT. SUCH DIFFICULTIES ARE INHERENT IN A GREAT DEAL OF WHAT WE HAVE TO DO IN HONG KONG OVER THE NEXT FEW YEARS NOT JUST IN RELATION TO CHINA.
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4. WE HAVE RECOGNISED ALL ALONG THAT THIS IS A SENSITIVE AREA WHICH WILL NEED TO BE HANDLED VERY CAREFULLY. THERE ARE LIKELY TO BE PARTICULAR SENSITIVITIES IN THE CIVIL SERVICE ABOUT ANY DISCUSSION OF THIS TYPE WITH THE CHINESE. BUT I HAD PREVIOUSLY BEEN UNDER THE IMPRESSION THAT YOU WERE KEEN TO RESUME THE DIALOGUE THAT WE WERE WORKING TOWARDS IN THE EARLY PART OF 1989. IF THIS IS NOT THE CASE, IT WOULD BE HELPFUL TO HAVE A CLEARER IDEA ON HOW YOU SEE THE WAY FORWARD, AND WHAT YOU THINK WE SHOULD DO TO PREVENT THE CHINESE IMPOSING THEIR OWN NOMINEES IN 1997.
WILSON
YYYY
ΜΑΙΝ
29
LIMITED
HKD
FED
PS
DISTRIBUTION
31
ADDITIONAL
2
MR BICKHAM, SPECIAL ADVISERS
NNNN
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
SIR P CRADOCK, NO10
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