Mus azız
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FM HONG KONG
TO DESKBY 02130OZ FCO
TELNO 2817
OF 021201Z DECEMBER 92
pa Coushi. Zot
Dept.
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INFO IMMEDIATE PEKING, UKREP JLG HONG KONG, COPENHAGEN
124341 MDHIAN 0316
PERSONAL FOR RICKETTS, HKD FROM GOVERNOR COPENHAGEN FOR PRIME MINISTER'S PARTY
CONSTITUTIONAL DEVELOPMENT: ASSESSMENT OF PRESENT POSITION
1.
MINISTERS MAY FIND IT HELPFUL TO HAVE A SHORT ASSESSMENT OF HOW I SEE THE PRESENT POSITION IN THE LIGHT OF THE CURRENT CHINESE CAMPAIGN OF HOSTILITY TO MY PROPOSALS ON CONSTITUTIONAL
DEVELOPMENT.
2.
THE MOST RECENT CHINESE STATEMENTS ON CONTAINER TERMINAL 9 AND THE VIABILITY OF CONTRACTS STRADDLING 1997 REPRESENT AN ESCALATION IN THEIR CAMPAIGN TO MAKE ME WITHDRAW THE CONSTITUTIONAL PROPOSALS THAT I SET OUT IN MY LEGCO ADDRESS ON 7 OCTOBER. THE GOING IS HARD. WE ARE PROBABLY JUST HOLDING OUR POSITION IN LEGCO, BUT A CONSIDERABLE PROPORTION OF THE BUSINESS COMMUNITY HAVE BEEN PERSUADED BY THE CONTINUING CHINESE HOSTILITY, AND IN SOME CASES CONSIDERABLE PERSONAL PRESSURES, THAT THE ONLY SOLUTION WILL BE FOR ME TO WITHDRAW MY PROPOSALS AS THE CHINESE HAVE DEMANDED. THE CHINESE HAVE AT LAST SUCCEEDED IN THEIR CAMPAIGN TO DRIVE THE HANG SENG INDEX DOWN, CAUSING CONSIDERABLE CONCERN AND IN MAY CASES SEVERE FINANCIAL LOSS TO INDIVIDUAL HONG KONG RESIDENTS. BUT THEY HAVE NOT SO FAR CAUSED ANY REAL DAMAGE TO THE HONG KONG ECONOMY. AS A RESULT OF ALL THIS, THERE HAS BEEN SOME VISIBLE SLIPPAGE IN PUBLIC SUPPORT FOR MY PROPOSALS, BUT THE EXTENT OF THIS WILL BECOME CLEARER OVER THE NEXT FEW DAYS AND WEEKS.
3. OUR LINE CONTINUES TO BE, AS I MADE CLEAR WHEN TALKING TO MEMBERS OF LEGCO YESTERDAY (1 DECEMBER), THAT WE RETAIN AN OPEN MIND AND ARE ALWAYS PREPARED TO CONSIDER ALTERNATIVE PROPOSALS THAT MEET THE CRITERIA OF BEING FAIR, OPEN AND ACCEPTABLE TO THE PEOPLE OF HONG KONG. APART FROM THIS, WE ARE OF COURSE WATCHING THE SITUATION CAREFULLY AND ARE MAKING ARRANGEMENTS FOR AN INCREASED LOBBYING EFFORT OVER THE NEXT FEW WEEKS UP TO THE TIME WHEN WE WILL INTRODUCE LEGISLATION INTO LEGCO (MIDDLE OR LATE
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