2

3.

The Governor asked whether Senator McConnell knew any reasons

as to why was the issue of MFN was so close to Senator Mitchell's

heart. Senator McConnell replied that he did not know the genesis

of Senator Mitchell's cause. Issues at his home constituency did

not appear to be the driving force.

4.

The Governor briefed Senator McConnell on the current

situation regarding Hong Kong's talks with China on constitutional

development. He first thanked the Senator for his continued

interest in Hong Kong. He said China always feared that other

countries would interfere with her affairs. Hong Kong's future

prosperity would however depend on the relationship between the US

and China and hence it was useful for the US to express an interest

in Hong Kong. with regard to constitutional development, the

Governor said public opinion in Hong Kong still showed very strong

support for his proposals. The public's attitude would vary

according to the amount of criticisms and attacks from China.

There might be two reasons for China's agreeing to talks on Hong

Kong's constitutional development:

(a) MFN, GATT;

(b)

China might have arrived at a stage from where they had

to decide either firing blank bullets or real bullets at

Hong Kong.

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