[following for use with PRC interlocutors but NOT the press]
The Governor went out of his way to accommodate China's two
principal concerns no Liberal legislators on ExCo and no
increase in the number of directly-elected seats (which would
have required an amendment to the Basic Law).
[Defensive with journalists]
SECRET TALKS NOW UNDER WAY?
-"Governor has made clear that there will be no secret deals.
We want to discuss these matters with China on basis of close
co-operation, but we will not be negotiating behind Hong
Kong's back or over its head.
CHINA WON'T DEAL UNLESS YOU WITHDRAW/AMEND PROPOSALS?
Up to LegCo to weigh up Governor's proposals and the
alternatives put forward by others. Confident that after a
period of mature discussion, LegCo will reach an agreement
which will be broadly acceptable to HKG, HMG and China.
that China will not maintain unrealistic preconditions.
HMG/GOVERNOR HAVE MISREAD CHINA?
Hope
Our policy is to discuss with China in spirit of co-operation and aiming for a smooth transition. If we have
misread China, should we change that policy?
ATTACKS ON BRITISH COMPANIES BY CHINA/BUSINESS WILL SUFFER?
Chinese have sought to clarify in recent statements that
attack on Jardines had no implications for other British companies. Moreover, it was directed at Jardines' alleged "political stand" aid would not affect their commercial
activities.
cny.bulls JM BRIEF
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