16 December 1992

Sir Adrian Swire

Chairman

John Swire & Sons Ltd

Swire House

59 Buckingham Gate

London

SWIE 6AJ

Foreign & Commonwealth

Office

London SW1A 2AH

01214

From The Minister of State

AK

in hams

du Banten 17/

Ли

u 11/22

川に

Dear Adrias.

Thank you for your letter of 7 December, enclosing some interesting notes from Peter Sutch. It is clear from this and other reports that the Chinese are leaving no stone unturned in their efforts to maximise pressure on the Governor.

It would have been pefectly possible for them to have accepted the Governor's proposals - which were carefully crafted to fall within their Basic Law - or to have suggested changes during or after his visit to Peking.

We are keen to see the present disagreements resolved as soon as possible. Political commotion is clearly unsettling for business. That said, Chris Patten's proposals for a modest extension of democracy are firmly in the interests of preserving Hong Kong as an attractive place to do business. They have our strong support. I hope that if others have alternatives they will come forward. LegCo can then make the final decision.

I do appreciate the delicate situation in which Swires finds itself. We and the Governor are very grateful for the support and advice you have been able to give. In the longer term, once the political problems are resolved I am sure that the economic realities will reassert themselves and you will find your relationship with China back pretty much to normal.

eve:

Alerts

ALASTAIR GOODLAD

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