CONFIDENTIAL
120315
MDHIA 0059
FAR BEEN SUPPORTIVE.
GOVERNOR PATTEN SEEKING TO ADVANCE DEMOCRACY IN HONG KONG WITHIN LIMITS OF PREVIOUS SINO-BRITISH AGREEMENTS. CHINESE STRONGLY OPPOSED: SEEKING TO UNDERMINE HKG BY SCARING HONG KONG'S
BUSINESS COMMUNITY.
SIGNIFICANT ELEMENT IN EXTREME CHINESE REACTION IS CONSPIRACY THEORY (WEST GANGING UP ON CHINA). THEY FEEL POLITICALLY INSECURE AND SEE HONG KONG AS A POTENTIAL ACHILLES
HEEL.
BLOW TO HONG KONG'S ECONOMY BY US ACTION (US AND CHINA ARE HONG KONG'S LARGEST INVESTORS AND TRADING PARTNERS) WOULD SEVERELY DAMAGE PATTEN'S POSITION AND HONG KONG'S CHANCES OF A MORE DEMOCRATIC SYSTEM NOW AND AFTER TRANSFER OF SOVEREIGNTY IN 1997.
PATTEN
YYYY
MAIN
66
HKD
FED
NAD
NEWS D
PUSD
PLANNERS
RAD
NNNN
DISTRIBUTION
66
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR HUM
2
PAGE CONFIDENTIAL