MR ROBERT ADLEY'S MEETING WITH THE SECRETARY OF STATE

POINTS TO MAKE: HONG KONG

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- Most pressing need is Chinese agreement to the

Airport financing. Danger of losing investor confidence if we delay further. Chinese may try to obtain assurances from us about political development in return. But two issues not

linked. On the political issues, Mr Patten needs time to seek views from people in Hong Kong.

-On democracy we have a commitment to seek a faster pace. We will pursue that seriously. But other arrangements for the 1995 elections to pursue as well. No need to rush into

conclusions.

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[Amending the Basic Law If raised] Mr Goodlad's comments in Hong Kong were in response to a direct question. No need to prolong public debate on the point.

[Martin Lee on Exco If raised] Must leave Mr Patten time to look at the broad issue of relations between Exco and Legco and managing Government business in Legco. Well aware of Chinese views.

Law and Order a real concern in Hong Kong Hope that the establishment of a PSB Liaison Office will improve co-operation with China over this and lead to a reduction in cross border crime. An area where the Chinese can show Hong Kong opinion that they have the best interests of Hong Kong at heart

HKC

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