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CONFIDENTIAL

From: K C Walker Date: 31 January 1991

Mr McLaren

CC:

Mr Paul, HKD

Mr Davies, FED Mr Figgis, RAD

HONG KONG: PROFESSOR LAU SIU-KAI'S PAPER ON "UNGOVERNABILITY"

1.

Thank you for copying to me the Governor's letter of 27 December 1990 and the enclosed paper by Professor Lau. I agree with the Governor that parts of the paper are too pessimistic. But the Professor's conclusions made me think that it might be useful if the problems which he identified - and the general questions of tactics for handling the Chinese as well as local opinion within Hong Kong - could fairly soon be considered afresh in the Office, perhaps initially by commissioning a planning paper.

2.

This is just how it seems to me from the RAD viewpoint, but I wonder whether others may be thinking on similar lines.

Kafathe

KC Walker

Far Eastern Section

Research & Analysis Dept

OAB2/125

210 6220

CONFIDENTIAL

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