MR. WALL

FALI

HONG KONG

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Lord Sterling came in to see me this morning. issues he raised was Hong Kong. He has been seeing

Adrian Swire and had spoken on the phone to Lydia Dunn.

The main proposition he put forward was that the Governor of Hong Kong should ask LegCo to bring forward their discussion of his reform proposals. At present, these are for discussion in early February, which leaves a considerable further period

of uncertainty. Lady Dunn had told him that it was very difficult to bring the discussion forward, but he thought that

there would nonetheless be advantages in the Governor saying

that he had asked them to try. This would not be a climb-

down, but would demonstrate that the Governor was open-minded

and was conscious of the uncertainties being created. It

would also help allay the fears, which Lord Sterling said were

widespread in Hong Kong and China, that the UK and US had a

secret hidden agenda.

I said I would pass on this point. He said he understood that

the Governor had already been thinking along these lines.

Ales

ALEX ALLAN

4 December 1992

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Mr Davies

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