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Mr Hur Hendys FED 1989 Conner

2 September 1992

Special Adres

Thank you for your letter of 4 August which the Prime Minister has seen.

The Prime Minister is not prepared to take a decision on whether or not to hold an OPD (K) until the Governor has sent us his recommendations on constitutional development. Your letter says that these were expected by the end of August. The Prime Minister would be grateful to see them as soon as possible.

To judge from the telegrams, it looks as if the proposals will, at the very least, be controversial with the Chinese. Does that in turn imply that the Chinese could retaliate, including over the airport? If so, Ministers might want to have had a full discussion on the implications of the proposals and our handling of them.

On the other side of the coin, if the proposals do not include provision for additional directly elected seats in 1995, they may be criticised in the House of Commons. That too may require Ministerial discussion.

I am copying this letter to Melanie Leech (Cabinet Office).

Jan,

Stephen

J. S. WALL

Stephen Smith, Esq.,

Foreign and Commonwealth Office.

CONFIDENTIAL

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