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p.r. Pets w. Parl

(84).

RECEIVED IN REGISTRY

1. MAR 1993

030172 MDHOAN 9606

23

SECRET

FM FCO

DFSK OFFICER

INDEX

PA

REGISTRY Action Take:

TO DESKBY 04010OZ HONG KONG

TELNO 202

OF 031749Z MARCH 93

INFO DESKBY 04010OZ PEKING, UKREP JLG HONG KONG

INFO DESKBY 03200OZ UKMIS NEW YORK

UKMIS NEW YORK FOR SECRETARY OF STATE'S PARTY

YOUR TELNO 17 TO PEKING AND PEKING TELNO 308: HONG KONG:

DISCUSSIONS WITH THE CHINESE

1.

We recognise the pressures in Hong Kong for an early explanation of what we have achieved with the Chinese, and that you cannot hold the position beyond Friday. If we are not by then in a position to announce talks, we share your preference for a statement by you to LegCo setting out the position reached, rather than gazettal of the legislation.

2.

The drafting of such a statement will be tricky. We need to find a balance between giving LegCo enough information, and not giving the Chinese reasonable grounds to claim that we have breached the confidentiality of the exchanges over the last few weeks. This may be a counsel of perfection. But we share your feeling that we should try to present matters in a way which does not entirely preclude subsequent resolution of our differences over talks with the Chinese (your para 7).

3.

We have now seen the latest redraft of your statement (Llewellyn's letter of 3 March), together with the revision of the earlier text enclosed with Cox's letter of 3 March to Dinham (this reflects similar points to those above). We have tried our hand at a reconciliation of these two drafts, also incorporating one or two thoughts of our own. In doing so, we have tried to avoid giving a catalogue of our exchanges, or ascribing specific views to the Chinese side. We are faxing the result to you and Peking. We look forward to hearing the result of your discussion with ExCo on the evening of 4 March.

4. Mr Goodlad has suggested that it would make it more difficult for the Chinese to complain about three-legged stools if the statement were to be made in the House here as well on Friday, by

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