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Come Depot. By Mr Goodlad

p.s.

301/1

PBC RAD 4 TODAY "RECERED IN REGISTRY

Mr James Miles

A

29 MAR 1993

DESK OFFICER INDEX

PA

REGISTRY Action Taken

Miss Padden Püzden

Dr J. Oes

Mr Hum

63

Mr Rickett, HK,

In Bunks 727 Mr Mones, FED

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MONES,

Mr Rickham,

Special Advisers

it will now go forward to the Legislative Council and then it will be up to the Legislative Council to decide whether or

not it should be adopted in its current form or it should be

revised or abandoned.

Q

A

So he has thrown down the gauntlet? The Chinese clearly did not

want him to do this and he has done it?

Very much so. The Chinese were gratified over the last few

weeks that he kept delaying the publication of this Bill. Now

that he's gone ahead and published it the Chinese are likely to

respond with a new barrage of vitriol against Mr Patten and I

think their strategy now will be to try to encourage members of

the Legislative Council, it'll be a last ditch effort by the

Chinese but persuade them that if they do go ahead and actually adopt this legislation then this could have devastating

consequences for Hong Kong so it's likely now to be a very tense

period for the next few weeks while the Legislative Council

discusses it.

Q

You use the word encourage, perhaps a more accurate word would

be threat?

A

Yes, the Chinese do appear to be adopting that kind of strategy.

That has been their strategy over the last few months. At the end of last year they were trying to persuade Hong Kong's business community to fall in line with Peking by making it clear

that all contracts would have to be cleared with the Chinese

Authority. Long-term contracts would have to be cleared with

them if they were to be put into effect before 1997. So that

will be their tactic I think now to undermine confidence in the

business community and use the business community and hopefully from China's point of view the legislature as well to put pressure on Mr Patten either not to put his Bill forward to the

Legislative Council at all or at least to persuade the

Legislative Council to revise it or abandon it.

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