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CONFIDENTIAL

→M Reckett.

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Mr Donte Miss Samole

PS/Mr Goodlad

Private Secretary

a return

HONG KONG: PAPER FOR OPD(K)

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FROM: C O Hum

DATE: 5 November 1992

CC:

PS/PUS

Mr Davies, FED

Mr Ricketts, HKD

1. I agree with Mr Ricketts' draft, which incorporates comments of my own. I should emphasise that while it incorporates suggestions from the Governor's advisers (and also some from Sir R McLaren) their key meeting with the Governor to consider the way ahead does not take place until tomorrow. We are submitting today in order to aim for the Secretary of State's weekend box, but there may be further work to be done on the paper tomorrow in the light of the Governor's own reactions.

2. While the draft advocates that we should hold firm to the Governor's proposals in our present dealings with the Chinese, OPD (K) recognised that there were circumstances in which it might become expedient to make minor changes. I think it is right therefore for the present paper to explore possible scenarios on these lines a little more fully. Our aim would be to maintain support for the Governor's proposals in Hong Kong, and in particular among LegCo members. There could well be many parts of the community in Hong Kong which in the longer run would prefer to see us engaged in dialogue with China on the basis of the Governor's proposals rather than maintaining the present angry stand-off. This is of course also implicit in the Governor's insistence that his ideas are no more than proposals, presented for discussion with China and in Hong Kong. He has taken the initiative in signalling to the Chinese that we are ready for further discussion through JLG channels

and that we are waiting for their ideas. He told ExCo on 27 October that he still hoped for some form of dialogue with the Chinese.

CONFIDENTIAL

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