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proposals may well be re-shaped. To give this message maximum impact, I am prepared to send a message to Foreign Minister Qian before the Governor tables his draft legislation, drawing

attention to any changes in it, explaining the legislative

process, and reiterating HMG's wish to embark on serious

discussions with China on these issues. We might also reinforce

this message through Ministerial contact with the Chinese

Ambassador in London.

12. These steps should keep the public momentum behind the

Governor's proposals up to the point at which they are tabled,

but also ensure that alternatives which move in the direction of

Chinese concerns are discussed privately with China and then

tabled. It will then be up to Leg Co to establish the best point

of balance. This puts a considerable responsibility on them.

There is no guarantee that it will produce a satisfactory result.

The best outcome would be the emergence of a compromise package

with which no one faction in LecGo was entirely content but which

met our objectives of free and fair elections, and also dealt

with the points which the Chinese have indicated privately cause

them most difficulty. I would expect such an amended package to

be greeted with considerable relief in Hong Kong. That may make

it easier to build a respectable LegCo majority for it although

the risk remains that an amended package will satisfy neither of

the main camps in LegCo.

13.

It is almost certainly too much to hope that we would be

able to secure Chinese acquiescence in whatever emerges from

LegCo. But their latest comments suggest that they will be

prepared to calibrate their reactions to reflect the outcome of

LegCo discussion. Direct discussions with China will still be

desirable at some point to make the most of any changes which

LegCo intend to adopt. My next six-monthly meeting with the

Chinese Foreign Minister (which is due to take place in the

Easter

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