CONFIDENTIAL

30

015757

MDHIAN 2558

CONFIDENTIAL

FM HONG KONG

TO DESKBY 06120OZ FCO

TELNO 413

OF 061102Z FEBRUARY 91

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

2.8

PERSONAL FOR MCLAREN, DOSS FROM GOVERNOR

MY TELNOS 390 AND 391: GULF: BURDEN SHARING

MKB 02013

m

1. AS I EXPLAINED ON THE TELEPHONE, WE ARE HAVING A DIFFICULT TIME WITH SOME MEMBERS OF LEGCO. THERE IS CONSIDERABLE OPPOSITION TO A STRAIGHT CONTRIBUTION WITHOUT STRINGS ATTACHED. THIS OPPOSITION RELATES BOTH TO THE SUM INVOLVED AND TO NOT LAYING DOWN ANY OBJECTIVE FOR THE FUNDING. SOME TO0 OPPOSE A CONTRIBUTION TO THE UK.

2. AT THE IN-HOUSE MEETING OF LEGCO YESTERDAY, VIEWS WERE EVENLY DIVIDED AMONGST THOSE ATTENDING BETWEEN SUPPORTERS AND OPPONENTS OF THE PROPOSAL. A SIMILAR SPLIT CONTINUES TODAY. IN ADDITION A LARGE PART OF THE CHINESE PRESS ARE CRITICISING THE PROPOSAL AS PUT FORWARD BY THE ADMINISTRATION.

3. ALLEN LEE AND THE LEGCO EXPERTS CALCULATE THAT, IF WE STICK TO OUR PRESENT PROPOSAL OF A DONATION OF HK DOLLARS 230 MILLION WITH NOT CONDITIONS ATTACHED, WE COULD HAVE AS MANY AS 18 LEGCO MEMBERS VOTING AGAINST. EVEN IF THE RESOLUTION WAS AGREED BY FINANCE COMMITTEE THIS, IN HONG KONG TERMS, WOULD BE VERY SUBSTANTIAL OPPOSITION, GREATER INDEED THAN ON ANY OTHER DISPUTED GOVERNMENT MEASURE IN THE RECENT PAST. THE LIKELIHOOD IS THAT AN EQUALLY SHARP DIVIDE WOULD BE CREATED IN THE COMMUNITY.

4. THE ALTERNATIVE IS TO ASK THAT OUR CONTRIBUTION SHOULD BE USED FOR LOGISTIC, MEDICAL AND OTHER SUPPORT FACILITIES. IF WE DO THIS, I AM ADVISED THAT THE OPPOSITION VOTES CAN PROBABLY BE REDUCED TO A MORE MANAGEABLE 10 OR 12 AND THE SUPPORTERS CORRESPONDINGLY INCREASED.

5. I AM ANXIOUS THAT A HONG KONG CONTRIBUTION SHOULD BE MADE AND SHOULD BE SEEN TO HAVE THE SUPPORT OF THE GREAT MAJORITY OF MEMBERS OF LEGCO. A CLOSE VOTE, EVEN IF IT PRODUCED THE RIGHT RESULT, WOULD PAINT HONG KONG IN A BAD LIGHT INTERNATIONALLY.

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CONFIDENTIAL

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