HONG KONG: ANNOTATED AGENDA

(i)

(ii)

(iii)

(iv)

Reactions to publication of the Governor's legislation:

LegCo groups, wider community in Hong Kong; business community, China.

Chinese options:

-

Propaganda barrage only, or further measures against Hong Kong (eg announcement about preparing separate arrangements for 1997)?

Rule out talks on electoral issues, or resume after an interval?

Non-cooperation across the board (including

British commercial interests) or limit the row to political relations over Hong Kong?

Constraints on Chinese behaviour:

Clinton,

economic damage to Hong Kong, public opinion.

Decisions for us and the Governor:

- When to introduce draft legislation into LegCo?

Line for use publicly and with Chinese.

- Handling of LegCo: should we be encouraging would-be amenders to clear lines with China? Prospects for LegCo debate.

Handling the Chinese: anything we can do to promote resumption of discussions? Informal channels? Timing/content of a meeting with Qian?

Longer-term implications of return to confrontation:

Airport.

JLG.

- Other Chinese pressure points (eg contracts and

franchises).

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