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GOVERNMENT'S TIMETABLE FOR CONCLUSIONS FROM THEIR ELECTORAL REVIEW). AND WE WOULD NOT WANT TO TAKE ACTION WITH THE CHINESE ON THE EVE OF A PARTY CONGRESS WHICH COULD PRODUCE A SHIFT TOWARDS THE REFORMISTS. FOR THE MOMENT, I THINK IT WOULD BE RIGHT TO TELL QIAN SIMPLY THAT WE WILL NEED TO TALK TO HIM ABOUT A RANGE OF ELECTORAL ISSUES IN DUE COURSE.
8. YOU WILL GET SOME COMPLAINTS FROM QIAN ABOUT RTHK (THE SUBJECT IS COVERED IN THE BRIEFS). THE CHINESE HAVE BEEN THOROUGHLY UNHELPFUL IN PICKING UP THE MEGAPHONE ON THIS ISSUE RATHER THAN TALKING ABOUT IT QUIETLY IN THE JLG. THAT IS CLEARLY THE RIGHT PLACE TO EXPLAIN TO THEM THE BENEFITS OF CORPORATISATION. I FOUND IT QUITE EFFECTIVE TO TELL ZHOU NAN THAT ON THE BASIS OF OUR EXPERIENCE, BRITISH WOULD PREFER HKG TO GO A GOOD DEAL FURTHER IN THE DIRECTION OF PRIVATISATION (EXCLAM). ON PEKING'S TRANSITIONAL AFFAIRS ADVISERS, THERE IS MUCH SUSPICION HERE THAT THE CHINESE HAVE PICKED THEMSELVES A GROUP OF BASICALLY PRO-CHINA FIGURES, WHO WILL TELL THEM WHAT THEY WANT TO HEAR. IT WOULD BE RIGHT TO WARN QIAN OFF ALLOWING THIS GROUP TO BECOME TOO VISIBLE OR FORMAL. AND IT WOULD BE GOOD TO GIVE HIM A TASTE OF HIS OWN MEDICINE BY MAKING THE POINT ABOUT CONSULTATION.
CONCLUSION
9. IN SUMMARY, THE SURGE OF CONFIDENCE HERE FOLLOWING THE AIRPORT MOU LAST SUMMER HAS BEEN SUSTAINED. COMMERCIAL LINKS INTO SOUTHERN CHINA ARE GROWING ALL THE TIME. THE AIRPORT PROJECT IS TAKING SHAPE (INDEED THE INITIAL WORKS ARE AHEAD OF SCHEDULE). BUT UNDER THE SURFACE, THINGS ARE STILL BRITTLE. THE FINANCIERS ARE CONFIDENT THAT HONG KONG'S STRUCTURES ARE NOW ROBUST ENOUGH TO SUSTAIN ANY KNOCK TO CONFIDENCE EXCEPT ONE FROM CHINA. BUT THERE IS NERVOUSNESS HERE ABOUT SIGNS THAT THE CHINESE ARE AGAIN RAISING THE TEMPERATURE PUBLICLY ON SOME ISSUES. THE NEXT TASK WILL BE TO GIVE INTERNATIONAL LENDERS THE CONFIDENCE THAT CHINA AS WELL AS BRITAIN IS COMMITTED TO THE DETAILS OF THE PROJECT. MEANWHILE, THE NEW POLITICIANS NEED FIRM LEADERSHIP. THERE IS, NOW, A UNIVERSAL AND IMMENSE ADMIRATION HERE FOR THE WAY IN WHICH THE GOVERNOR CONTINUES TO PROVIDE THIS: AND A PLEA THAT HIS SUCCESSOR SHOULD BE APPOINTED AS SOON AS POSSIBLE AFTER THE ELECTION.
10.
PLEASE ADVANCE TO PRIVATE SECRETARY, SIR J. COLES, BURNS AND FOX, HKD.
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