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proposals falling short of that, the Chinese reaction would

probably depend on the extent to which they judged we had

taken account of their views. They would no doubt continue to

oppose the package publicly; but if they concluded that our amendments met their essential points on the functional

constituencies and the Election Committee, they might moderate

the practical steps they took in retaliation, and/or

reserve the right to take further measures at the time of the

1995 elections or of the handover in 1997.

Conduct of the Discussions

5. Detailed tactics will need to be adjusted as the discussions proceed. The two essential points for the

negotiators are:

to maintain a clear distinction between the first,

exploratory phase (which may last for more than one

round), and a second phase at which more specific proposals might be discussed. Moving from one phase

to the second would be a matter for Ministerial

decision on the basis of the Governor's and ExCo's

advice.

to avoid, in the conduct of the first phase, giving

the Chinese side an indication of what amendments we

might eventually be prepared to accept.

Hong Kong Department

FOREIGN AND COMMONWEALTH OFFICE

18 February 1993

steeringbrief 15.2

NH

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