CONFIDENTIAL AND PERSONAL

MKB 180/2

18

to Righetts, two

The winner was

grateful for this note.

1 U 1993

FROM: P F Ricketts

Hong Kong Department DATE: 10ctober 1993

G.J. Darey 6/10

Mikister

Hum

Mr Hum o/r

PS/Mr Goodlad

HONG KONG/CHINA: JARDINES

1

1.

cc: Si J Cotés-

M

Mr Fry, FED

7/10

the White $110.

езе

4

1/10

Sir Charles Powell has given me in confidence the attached

note of the talks which he and Henry Keswick have just had in

Peking.

2.

There are a number of interesting points:

Sir C Powell's idea (in his covering letter) about trying to reach agreement on principles in the talks on electoral issues. I see his point. But I very much doubt that returning to a debate about principles would help us to finesse our present problems. It would be different if the Chinese side had showed any willingness to be flexible on the practical details in return for our signing up to some general principles. But I see no sign of that. It is much more likely that if we ever accepted their principles

(however packaged) they would then demand that we implement them through highly restrictive electoral arrangements; The Chinese side evidently tried to galvanise Jardines into putting pressure on HMG by uttering dark threats about rough

times ahead if the talks breakdown. Sir C Powell added in

discussion with me that if there was a breakdown the business

community in Hong Kong would almost to a man put the blame on

the Hong Kong Government. Re-insurance with Peking was already happening apace: but the trend would accelerate. This strikes me as right. It is an angle not covered in Hong Kong's scene-setting telegram for the Minister's visit which

struck me as too sanguine about the implications of breakdown

jardines.PET.JRB

CONFIDENTIAL AND PERSONAL

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