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Reference

MAS 011/2

2 FLD 1991

CODE 18-77

Ms Saunders

ANNUAL REPORT 1990

1.

Following are my comments on the draft report.

VISITS BY THE GOVERNOR

2. Last year we had a section entitled "Visits made by the Governor of Hong Kong". We should suggest the inclusion of one this year which should cover the Governor's visit to China this January.

SINO-BRITISH RELATIONS

3.

I would suggest redrafting paragraph 3 as follows:

"Her Majesty's Government continue to consider close and friendly relations with China as important in themselves and of direct benefit to Hong Kong. Only through a cooperative relationship with China can we establish in good time a solid and workable basis for Hong Kong's future and maintain Hong Kong's own confidence in that future. During 1990, Her Majesty's Government have worked for a steady improvement in Sino-British relations, particularly after the difficulties of 1989. The then Minister with responsibility for Hong Kong, Mr Francis Maude, visited Peking in July. In November, the 12 member states of the European Community decided on a relaxation of the restrictive measures taken against China in June 1989. In November, the Chinese Vice Minister for Foreign Affairs, Mr Tian Zengpei, visited London. In the coming months we expect a further increase in high level contacts."

BASIC LAW

4.

I think we should avoid specific reference to our confidential representations having resulted in improvements; and try to reflect the language of the HMG public statement on promulgation. I suggest redrafting the end of paragraph 4 as follows:

to the Chinese authorities through a variety of channels. We are pleased that during the consultation process a number of improvements were made to successive drafts of the Basic Law. Our concern throughout has been to ensure that the Basic Law is consistent with the provisions of the Joint Declaration. While there are inevitably some provisions which we would have preferred to have seen drafted differently, the Basic Law is on the whole an acceptable reflection of the Joint Declaration and provides a firm foundation for Hong Kong's future as a Special Administrative Region of China."

(We should not refer to "Hong Kong's future autonomy" as in the original draft, since it will not have complete autonomy.)

MUKAMD

CC

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