CONFIDENTIAL

175313

MDHIA 3005 *

GOVERNOR'S CONSTITUTIONAL PROPOSALS WERE PART OF SOME WIDER WESTERN PLAN TO BRING DEMOCRACY TO CHINA.

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LEE IS HIGHLY RESPECTED IN BRITAIN, BUT IN THIS CASE HIS ANALYSIS IS COMPLETELY WRONG.

THE GOVERNOR DREW UP HIS PROPOSALS FOR THE 1995 ELECTIONS IN THE LIGHT OF HIS DISCUSSIONS WITH PEOPLE IN HONG KONG DURING HIS FIRST TWO MONTHS IN THE TERRITORY. THEY REFLECTED HIS ASSESSMENT OF WHAT HONG KONG PEOPLE WANTED. MR PATTEN HAD NO OTHER CONSIDERATIONS IN MIND.

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MINISTERS IN LONDON WERE OF COURSE INFORMED OF THE GOVERNOR'S CONCLUSIONS AND GAVE THEIR FULL SUPPORT TO HIS PROPOSALS. THERE WAS NO/NO PRIOR CONSULTATION WITH ANY WESTERN GOVERNMENT ABOUT THOSE PROPOSALS BEFORE THEY WERE ANNOUNCED. NOR HAVE THE BRITISH OR HONG KONG GOVERNMENTS BEEN ACTIVELY SEEKING THE SUPPORT OF OTHER GOVERNMENTS FOR THEM.

THE BRITISH GOVERNMENT ATTACHES GREAT IMPORTANCE TO ITS RELATIONS WITH THE GOVERNMENT OF THE PRC. ANY SUGGESTION THAT THE GOVERNOR'S PROPOSALS ARE SOMEHOW DIRECTED AT CHINA RATHER THAN HONG KONG IS FANCIFUL AND FALSE. THE BRITISH GOVERNMENT HOLDS TO THE CONCEPT OF ONE COUNTRY TWO SYSTEMS AND BELIEVES THAT IT MEANS WHAT IT SAYS.

5. I COULD GO ON TO REFUTE THE CHINESE CONTENTION THAT THERE HAS BEEN A FUNDAMENTAL CHANGE IN OUR POLICY TOWARDS HONG KONG ON THE LINES USED BY YOU AND THE PRIME MINISTER WITH ZHU RONGJI, AND WHICH I HAVE ALREADY DEPLOYED WITH WANG FENGCHAO (WHEN LU PING DECLINED TO SEE ME ON 1 DECEMBER MY TELNO 1671)

6.

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I AM NOT SANGUINE THAT AN APPROACH OF THIS KIND WOULD AFFECT CHINESE THINKING MATERIALLY. BUT I DO NOT THINK THAT WE SHOULD ALLOW ALLEGATIONS FROM SUCH A SOURCE TO STAND ON THE RECORD WITHOUT REFUTING THEM DIRECTLY TO THE CHINESE. SUCH AN APPROACH WOULD ALSO HAVE THE ADVANTAGE OF RESUMING CONTACT OVER HONG KONG IN PEKING. ONE OF THE CONSEQUENCES OF THE PRESENT SITUATION IS A LACK OF COMMUNICATION. IN RECENT WEEKS I HAVE BEEN PRESENT AT TWO MEETINGS WITH CHINESE LEADERS AT WHICH HONG KONG WAS RAISED (LORD HOWE'S DINNER WITH WU XUEQIAN ON 3 DECEMBER MY TELNO 1698: AND SIR M

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MY TELNO 1725). BUT

PALLISER'S CALL ON ZHU RONGJI ON 10 DECEMBER I HAVE HAD NO CONTACT WITH THE STATE COUNCIL HONG KONG AND MACAO OFFICE OR THE FOREIGN MINISTRY'S HKMAO SINCE MY ABORTIVE CALL ON LU

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