1992-12-04 19:12 COMMS OFFICE (GOVT HOUSE)

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SHORT SUPPLY AT THE MOMENT AND WE'VE SEEN A VERY GREAT DETERIORATION

OF RELATIONSHIP BETWEEN CHINA AND HONG KONG AND CHINA AND BRITAIN.

HOW DO YOU AIM TO RESTORE OR BUILD TRUST AND UNDERSTANDING AND, ARE

YOU WILLING TO SACRIFICE TRUST AND UNDERSTANDING FOR YOUR POLITICAL

REFORM PACKAGE?

GOVERNOR: I SUSPECT THAT IT WAS ALWAYS GOING TO BE DIFFICULT TO AGREE

ON ARRANGEMENTS FOR THE 1995 ELECTIONS WHICH WERE REGARDED AS WIDELY

I SUSPECT IF THERE ACCEPTABLE TO PEKING, TO LONDON AND TO HONG KONG.

HADN'T BEEN A PROBLEM IT WOULD HAVE BEEN ONE THAT WOULD HAVE BEEN

TACKLED SUCCESSFULLY AND BEFORE JULY THIS YEAR.

WHAT I DON'T THINK

UNDERSTANDING WITH ANYONE

WOULD BE AN ACCEPTABLE BASIS FOR TRUST AND

WAS IF THE PRICE THAT THE GOVERNMENT OF HONG KONG HAD TO PAY WAS

SACRIFICING THE TRUST AND UNDERSTANDING OF THE PEOPLE OF HONG KONG.

IT SEEMS TO ME THAT WHAT I HAVE TO SEEK TO DO IS TO RECONCILE THE

TRUST AND UNDERSTANDING OF THE PEOPLE Of hong kONG WITH A BETTER

WORKING RELATIONSHIP WITH PEKING AND CHINESE OFFICIALS AND I VERY MUCH

HOPE THAT AS WE MOVE THROUGH THESE PERHAPS INEVITABLY CHOPPY WATERS

WE'LL FIND THAT THERE IS SMOOTHER SAILING THE OTHER SIDE, BUT UNLESS

ONE WAS TO RUN THE RISK OF SACRIFICING TRUST AND UNDERSTANDING IN HONG

KONG I SUSPECT THAT ONE WAS GOING TO FIND ONESELF WITH AN ARGUMENT

SIMILAR TO THIS SOME TIME OVER THE NEXT FEW YEARS WHENEVER

ADDRESSED THE PROBLEM OF HOW BEST TO ORGANISE THE 1995 ELECTIONS.

ONE

HOWARD YOUNG: SIR, BEFORE I ASK MY QUESTION I WOULD JUST LIKE TO

MENTION THAT YOUR QUESTION DIRECTED TO MY COLLEAGUE IN CRC, HONOURABLE

EDWARD HO, ON YOUR PACKAGE AND THE BASIC LAW, I DID MENTION TO YOU MY

VIEWS ON THE 13TH OF OCTOBER WHEN WE SPOKE PRIVATELY AND ALSO 14TH AND

22ND OCTOBER AND THEN CULMINATING ON THE 5TH NOVEMBER IN A LETTER

TO

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