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4.

The airport saga and the first direct elections to LegCo mean that parliamentary interest in Hong Kong is likely to remain at a high level. These annual reports have not in the past occasioned debates, but there will be some controversial ground to cover in this year's report. The Secretary of State's foreword would be an opportunity to get

across the key points in our case on democracy.

5. Before setting Hong Kong to work drafting their parts of

the Report, I thought it best to check that the Minister

agrees that we should go this time for a similar animal to last year's.

Recett

PF Ricketts

BANABT/2

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ا سامان

16/7

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