Constit Dept.

012675

MDLIAN 035

238

CONFIDENTIAL

MN Baz/z

52-50

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2952

OF 240337Z DECEMBER 92

INFO PRIORITY WASHINGTON, PEKING, TOKYO, UKREP JLG HONG KONG

MEETINGS WITH AMERICAN VISITORS

SUMMARY

1. I MET A NUMBER OF HIGH RANKING GROUPS FROM THE US DURING THE LAST TWO WEEKS. THE VISITORS' MAIN CONCERNS WERE CHINESE ATTACKS ON MY CONSTITUTIONAL PACKAGE, OUR NEXT STEPS, AND RENEWAL OF MFN FOR CHINA.

DETAIL

2. FIVE US GROUPS VISITED HONG KONG DURING THE LAST TWO WEEKS. THESE WERE LED BY:

(A) WINSTON LORD, FORMER US AMBASSADOR TO CHINA

(B) BARBARA FRANKLIN, US SECRETARY OF STATE FOR COMMERCE

(C) WILLIAM CLARK JNR, ASSISTANT SECRETARY OF STATE FOR EAST ASIAN AND PACIFIC AFFAIRS.

(D) SENATOR SAM NUNN

(E) RICHARD HOLBROOKE, MANAGING DIRECTOR OF SHEARSON/AMERICAN EXPRESS

3. I EXPLAINED THE BACKGROUND LEADING TO MY CONSTITUTIONAL PACKAGE AND HOW CHINA HAD WANTED THE ELECTORAL ARRANGEMENTS TO BE RIGGED IN ORDER TO KEEP OUT THE LIBERALS. I ALSO INFORMED THE VISITORS THAT THERE WOULD HAVE BEEN VERY STRONG OUTCRIES IN HONG KONG HAD I ENGAGED IN SECRET DEALS WITH CHINA PRIOR TO THE ANNOUNCEMENT OF MY PROPOSALS. I SAID THAT THERE MIGHT BE THREE MAIN REASONS BEHIND THE STRONG REACTION OF CHINA TO MY PROPOSALS:

(A) THE PARANOIA AMONG SOME SENIOR CHINESE LEADERS THAT THERE HAD BEEN AN INTERNATIONAL CONSPIRACY AGAINST CHINA:

(B) THE FEAR THAT FURTHER AUTONOMY IN HONG KONG MIGHT DE-

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CONFIDENTIAL

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