POINTS TO MAKE

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Realise that we have disagreements over the scope of the

Governor's proposals, and the handling of them with the

Chinese before they were announced. But hope you accept

that we do not differ on objectives: we want to see fair

and open elections, and to maintain as far as possible a cooperative relationship with China.

We were well aware that the Chinese would object to some

of the Governor's electoral proposals. The vehemence of

their reaction seems to be due to a combination of

factors:

The

Anxiety that the Governor's appointment and his proposals represent a change of British policy towards

Hong Kong. As you know, this is not the case.

1995 elections were always going to be a difficult

issue with the Chinese. The Governor and Ministers

took a political decision that it would not have been

possible to spend months in consultation with the

Chinese (with very little chance of reaching agreement) before making announcements publicly. No other choice, given the level of speculation about this issue in Hong

Kong.

Their conspiracy theory that the Governor's proposals

form part of an international plot to undermine the

Kwan Chinese regime. Very unhelpful that Lee Qian Yew has given this further currency.

Possibly a sense that the Prime Minister was in a weak

position and the British counsels were divided.

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