CONFIDENTIAL

BIEN-

(b) a dinner with Hong Kong business and political

leaders and a lunch with local community leaders:

opportunities for wide-ranging discussions; I enclose a draft for the short speech to be made at the Community lunch (Annex D).

(c) a meeting with the Executive Council (ExCo): a formal occasion, to brief them in confidence on the talks in Peking and HMG's thinking on cooperation with China; to thank them for their staunchness in difficult times; and to hear from them about the current situation in Hong Kong. Officials will draft a speaking-note in the light of the talks in Peking;

(d) a reception for British businessmen: they will hope to hear a positive message on Sino-British

cooperation as well as HMG's support (within the limits of the level playing-field) for their efforts.

There are also tours of the Territory and a private (political) engagement.

Relations with China

The Prime Minister will find people in Hong Kong keenly interested in the outcome of his visit to Peking. He can brief ExCo frankly, but will have to be more guarded with others, particularly about points of disagreement. All will be glad that he visited China, though few understand the domestic political costs. if any Hong Kong people will expect human rights to have been a prominent or productive agenda-item, though any progress on political detainees from Hong Kong will be

Few

CONFIDENTIAL

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