SECRET
HKB
012/1
RECELED IN REGISTRY
13 APR 1993
FROM:
PF Ricketts
DATE:
Hong Kong Department
31 March 1993
REGISTRY
DESK OFFICER INDEX
PA
Action Taken CC:
PS/PUS
Sir J Coles
Mr Davies,
FED
Mr Hum
PS/Mr Goodlad
Private Secretary
Con Kempt Me (sen)
103
Mr Wilkinson, Planners Mr Wye, RAD
HONG KONG: ISSUES AHEAD
1.
In preparation for the Secretary of State's discussion with the Governor on 16 April, I submit a paper which seeks to set the immediate issues in the context of our longer term objectives, to consider what the Chinese might do if we cannot reach agreement with them, and what steps we can take to mitigate the damage.
2.
I am submitting now in case Ministers wish to take this paper for aircraft reading. I have shown an earlier draft to the Governor and his team and to Mr Galsworthy in Hong Kong, and to Sir R McLaren. This has provoked a lively correspondence. I have incorporated drafting points as far as possible. But the paper has flushed out an interesting divergence of view on the question of whether it is in our interests to hold talks with the Chinese. We here have taken the view (and the Secretary of State has endorsed this) that the balance of advantage is (narrowly) in favour of talks, not least because the alternative would be a definitive parting of the ways with China over Hong Kong. Sir R McLaren shares this view. But the Governor and his team and Mr Galsworthy take the position that:
talks are not in our interest because the prospect of agreement is minimal and the Chinese reaction to a breaking off of talks would be worse than introduction of the Bill without talks.
hum31.3issues ahead
SECRET