Classification SECRET

OUT TELEGRAM

Caveat

ZCZC

ZCZC

SECRET

TC

21

CAVEAT

3

FM FCO

FM

4

TO DESKBY 150130Z HONG KONG

TO

5

TELNO

TELNO

61

OF

OF 141328Z JULY 93

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

AND TO

8

91

YYYY

MAIN

ADDITIONAL

NNNN

101

YOUR TELNO 1138: LOCALISATION POLICY

11

Precedence DESKBY

12!

13

14

15

16

18

191

201

21

231

241

251

36!

27

281

201

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,

Crishs being supporrently it is nonetheless unfortunate that a decision) to Zikely to be 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

Catchword:

chinesé

Chinese

File number

LOCALISATION RONG KONG

Drafted by Block capitais) N C WHITNEY

Telansone, no

270 2651

Authorised for despatch by:

For COD

use only

Comcen reference

Date/time

14/7

APS/MR C&ODZAI

16:04

Telegram number

Printed in the UK for HMSO 1/91 Dd FC03233 M 200 CCN 56294

Processed by

STOCK No.C037B YFB6

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