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(.allentee14

SECRET

On relations with China, would not accept the point in your paper that we have adopted a confrontational

attitude. All along we have sought to resolve our

differences with China through discussion. We

remain fully committed to the Joint Declaration and

believe that cooperative relations between Britain and China are good for Hong Kong.

With a lengthy

debate soon to start in LegCo, hope that the

Chinese side will be willing to sit down and discuss the issues with us.

Therefore

[Supplementary Points for Use if Raisedl

Election Committee: Essential point is that

the elections should be fair and open.

essential that the members of the Election

Committee (who will choose ten members of LegCo)

should themselves be elected. The Governor has

proposed simplest way of achieving this (using elected District Board members). If you can come

up with alternative arrangements which are fair and

open to elect a wider range of people to the

Election Committee, Governor has made clear willing

to consider them.

Governor has not agreed to expand composition of

the Election Committee to mirror that in the Basic

Law.

Has said members of the Committee must be

elected. Happy to consider proposals which meet test that elections should be fair and open.

SECRET

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