swires.let

Sir Adrian Swire

Thank you for your letter of 7 December, enclosing some

interesting notes from Peter Sutch. It is clear from this and

other reports that the Chinese are leaving no stone unturned in

their efforts to maximise pressure on the Governor.

It would have been perfectly possible for them to have accepted

the Governor's proposals which were carefully crafted to fall within their Basic Law or to have suggested changes during or

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after his visit to Peking.

We are keen to see the present disagreements resolved as soon as possible. Political commotion is clearly unsettling for business. That said, Chris Patten's proposals for a modest extension of democracy are firmly in the interests of preserving

Hong Kong as an attractive place to do business. They have our

strong support. I hope that if others have alternatives they

will come forward. Legco can then make the final decision.

I do appreciate the delicate situation in which Swires finds

itself. We and the Governor are very grateful for the support

and advice we you have been able to give. In the longer term, once the political problems are resolved I am sure that the economic realities will reassert themselves and you will find

your relationship with China back pretty much to normal.

Alistair Goodlad

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