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SECRET UK EYES A
ITEM 1
1.
INTRODUCTION
The Chairman welcomed all members of the Committee, in particular those who had travelled from Hong Kong to attend. He reminded members that the principal purposes of the HKSC were to update members on Hong Kong issues and to make recommendations for further consideration or action where appropriate.
ITEM 2
2.
POLITICAL UPDATE
The Chairman invited Mr Ricketts, Hd HK Dept FCO, to provide the political update. Mr Ricketts dealt with reaction in Hong Kong and in the PRC to the Governor's proposals for democratic reforms in some detail, highlighting in particular:
an
a. The impact of the proposals on already difficult relationship with the PRC.
b. The fact that whilst much of the Hong Kong population generally approved of the proposals, there was some concern in the business community that
commercial
confidence might be affected adversely.
3. Mr Ricketts stated that HMG was fully supportive of the Governor, but that FCO were also trying to build bridges to the PRC to improve the situation. This had become more hopeful following a lessening in intensity of the PRC campaign against the Governor, which had come to a climax before Christmas 1992; reflected in the dramatic fall in the Hang Seng Index. Since then,
possibly due to the influence on PRC of international considerations (including the US Election), feedback from Hong Kong Chinese that the PRC campaign might have been excessively robust, and finally maybe even a realisation by the PRC that the Governor's proposals were indeed no more than that, the opportunities to achieve a dialogue with the PRC seemed more favourable. The main and continuing problem was the PRC pre- condition for any discussion that the Governor had first to withdraw his proposals: this was limiting the room for diplomatic manoeuvre. was likely to be summer before the process of consideration of the Governor's proposals was completed in LEGCO.
ITEM 3 HONG KONG VIEW
It
4. CBF HK commented that at the last HKSC meeting he had described the Governor's initial impact as a 'triumph of style'; this had now been followed by one of substance. Although the proposals for democratic reform were modest they had nonetheless polarised the HK community
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ACTION
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