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and

Governor's proposals are inconsistent with the JD and the

BL and violate specific understandings between the British Chinese Governments. They have issued warnings that if

persists, the Chinese will start again from

and reconstitute the executive,

the Governor

scratch

in

1997,

legislative and judicial bodies in accordance with the BL,

although the extent to which they are prepared to go

remains uncertain.

7.

will

seek

combination

In addition to pursuing a media campaign, they

to influence groups and individuals by a

of threats and inducements. In particular they will put as much pressure as possible on Legco members not

to support the package, and will seek to persuade their

industrial contacts that confrontation with

commercial and

China is bad for business. They may also try to work on

selected civil servants with the aim of spreading concern

in the civil service.

8.

of

The Chinese will also look for additional ways

bringing pressure to bear which do not harm their own

interests e.g. calling off or scaling down, some visits.

They will

Committee.

want

to

permit no progress in the JLG and Airport

They could make difficulties about land grants

and possibily over contracts and franchises. They will bring it home to us that they have the power, if

choose to exercise it, to make the administration extremely difficult over the next four and a half years.

they

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