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China Dimension

5.

The Chinese

reaction was

largely as expected.

There should be no illusion that the Chinese will be

persuaded by our arguments in support of the package.

gulf between what we considered to be

Given the wide

honourable and

acceptable and the Chinese fear of loss of

[their] control through the transition years and beyond,

plus their suspicion about British intentions there is no

prospect of an agreement or compromise on the basis of our

proposals.

It is clear that they will not accept our

proposals as basis for serious negotiation, and they are

counter proposals. They would insist

not

BL,

likely to make

that we accept their principles (i.e. convergence with the

adherence to previous understandings between the two

sides) as pre-conditions for negotiation. No progress can

therefore be expected in JLG or other formal discussions on

the package.

6.

HMA Peking's very valid observations are that

the Chinese will not acquiesce to the implementation of the

package i.e. our hope for an outcome similar to the dispute

over the Bill of Rights

legislation is now remote. The

Chinese will see the period immediately ahead in terms of a

Their aim will be to undermine public

sharp struggle.

support for the

Governor's proposals by claiming that the

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