310913Z
REFERRED TO MR RICKETS FOR DIST ADVICE-HK POLICY SUGGESTED LNMDAN 2123 PEHPAN 7256
SECRET
DD 31090OZ FCOLN
FM PEKIN
TO COLN
31085OZ MAR
GRS 1306
SECRET
FM PEKING
TO DESKBY 31090OZ FCO
TELNO 455
OF 31085OZ MARCH 93
INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD
HONG KONG PERSONAL FOR PS/GH
UKREP JLG PERSONAL
FOR GALSWORTHY
RICKETTS' FAX TO DINHAM OF 29 MARCH: HONG KONG:
1.
DISCUSSION PAPER
THE DRAFT COVERED BY YOUR FAX SEEMS TO ME TO INCLUDE THE RIGHT POINTS AND SHOULD PROVIDE A GOOD BASIS FOR DISCUSSION AT THE SECRETARY OF STATE'S MEETING. I HAVE TWO GENERAL COMMENTS.
2. I NOTE THAT YOU HAVE INCORPORATED THE SECRETARY OF STATE'S VIEW (IN FCO TELNO 296 TO HONG KONG) THAT THE BALANCE OF ADVANTAGE LIES IN FAVOUR OF TALKS IF THEY CAN BE ARRANGED ON AN ACCEPTABLE BASIS. YOU HAVE ALSO BROUGHT OUT THE FACT THAT TALKS ARE UNLIKELY TO BRIDGE THE GAP BETWEEN THE TWO SIDES. BUT IF WE ARE TO MAKE EVERY EFFORT TO REACH AGREEMENT - AND TO BE SEEN BY THE HONG KONG COMMUNITY TO BE DOING SO - I THINK WE SHALL HAVE TO ALLOW SUFFICIENT TIME FOR THE PROCESS TO MATURE: THERE WILL BE NO AGREEMENT IF WE HAVE TO OPERATE UNDER TIGHT (BRITISH-IMPOSED) DEADLINES. HERE THE BRITISH AND CHINESE TIMING CONSIDERATIONS COME INTO SHARP CONFLICT. WE WILL WANT TO CONCLUDE THE PROCESS AS SOON AS POSSIBLE, WHETHER OR NOT AN UNDERSTANDING CAN BE REACHED: THE CHINESE WILL WANT TO PROLONG IT ALMOST INDEFINITELY. THE POINT ABOUT THE TIMING DILEMMA WE ARE LIKELY TO FACE IS WELL MADE IN PARA 13 OF THE DRAFT.
3.
MY SECOND GENERAL POINT CONCERNS THE OBJECTIVE OF MAINTAINING AN EFFICIENT AND EFFECTIVE ADMINISTRATION IN HONG KONG UP TO 30 JUNE 1997. THE JUDGEMENTS WHICH WILL NEED TO BE MADE ARE ONES FOR THE GOVERNOR, NOT ME. BUT WE DO HAVE TO FACE THE PROSPECT THAT IF THERE IS NO AGREEMENT WITH CHINA AND WE GO OUR OWN WAY, THE CHINESE WILL SEEK TO MAKE LIFE AS DIFFICULT AS POSSIBLE FOR US. THAT POINT IS NOT DUCKED IN THE PAPER, BUT I WONDER IF WE SHOULD BRING OUT MORE STARKLY THE LIKELY EFFECTS OF CHINESE EFFORTS TO ''POLARISE THE CIVIL SERVICE AND UNDERMINE THE AUTHORITY OF HKG' (THIRD TIRET OF PARAGRAPH 9 OF YOUR DRAFT). THE FIFTH TIRET OF PARAGRAPH 11 SPEAKS OF THE ''NEED TO DO WHAT WE CAN TO SUSTAIN MORALE IN THE CIVIL SERVICE
THAT POINT MAY NEED EXPANSION. SO PERHAPS WILL THE TIRET DEALING WITH THE SCOPE FOR UNILATERAL ACTION: EXPERIENCE SO FAR SUGGESTS THAT THERE IS A REAL RISK THAT LEGCO WILL DECLINE TO VOTE FUNDS FOR PROJECTS PUBLICLY OPPOSED BY CHINA.
.
4. MY DETAILED COMMENTS ARE AS FOLLOWS.
5.
WHAT ARE WE SEEKING TO ACHIEVE (PARAS 2-4)
I) WE SUGGEST SPLITTING THE OBJECTIVES IN THE FIRST TIRET OF PARA 2, AND EXPANDING THE SECOND OF THEM, AS FOLLOWS: