HONG KONG
SECRET
Will be discussing with the Governor at the weekend ideas in his telegram for handling the political issues in Hong Kong.
Agree with his broad approach. Three related issues:
ExCo's composition. At present awkward: the pro-business politicians are turning to China, and the Liberals are excluded. Governor is surely right that putting Martin Lee on ExCo would be more trouble than it was worth. Idea of a smaller more cohesive ExCo attractive.
Has
Relations with LegCo. Governor plans to lead from the front in winning support in LegCo for his policies. ideas for new consultative machinery to draw in the main LegCo politicians and provide a way to test acceptability of his policies. Trick will be to give LegCo leaders an incentive to work with the Governor.
Arrangements for 1995 elections. We need to handle our public commitment to more directly elected seats in way which maximises our bargaining leverage without involving us in public climb-down. Public presentation will be tricky. Governor will need to say something in his annual speech to LegCo in October. But we will not want to get drawn in to a public negotiation with the Chinese, or be seen to be pushed back from our opening position. Points to keeping public comments general pending negotiation with Chinese.
Following my visit to Hong Kong, suggest that I should put the Governor's detailed proposals on all these issues to OPD (K) in September. Ground will then need to be prepared with the Chinese.
On the airport, we have put the ball into the Chinese court with our proposal to agree the financing arrangements for the building of the airport itself, leaving the airport railway for later. Chinese most unlikely to accept. But puts us in a good public position to keep the pressure on them over the summer, pending Governor's announcement of his political proposals.
MAXAMX
SECRET