70
SECRET FM FCO
TO DESKBY 15013OZ HONG KONG
TELNO 666
OF 141328Z JULY 93
SECRET
HKA 016/1
AUL 1993
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
Tabe
057226 MDHOAN 5645
1016/1
TOP COPY Q DIST?
قام
YOUR TELNO 1138: LOCALISATION POLICY
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1 When you consulted us earlier on the problems with the Localisation policy, we recognised that there was no easy solution but that taking the initiative to change the policy before the matter came to the courts represented the best available option (our telno 462). In expressing this view we noted that the Chinese would find it difficult to defend continuation of the present policy and that taking the initiative would avoid (or at least reduce) attention being focused on the Bill of Rights. We still believe that this remains the least bad option.
2.
While there will never be a good time to change the policy, it is nonetheless unfortunate that a decision risks being forced on you at a time when we are at a particularly delicate stage in the talks with the Chinese over the 1994/95 elections, and when progress is at last being made in other important areas such as the Airport. It is very difficult to predict how the Chinese will react: they will certainly be deeply suspicious. To inform them of this in the same week as the gazettal of the BEC commencement notice (on which we are replying separately) could lead to another round of accusations about petty tricks. This would be unwelcome. We would like to avoid if at all possible dissipating the more positive atmosphere evident during the Secretary of State's visit to Peking.
We wonder whether the AECS are fully intent on taking early Legal action. We noted from the the GIS Media Summary of 10 July that the AECS had said after a meeting with the Secretary for the Civil Service, that they would refrain from Legal action as they
Is were convinced of HKG's sincerity in reviewing the matter. there any scope for delaying for a few months the change in policy? If legal action Looks Likely, could you perhaps renew the contract of the officer in the specific case where you are vulnerable and thus take the heat out of the issue for the time
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