HKC 02/

RECEIVED IN REGISTRY

10 FEB

1993

DESK OFFICER

INDEX

PA

REGISTRY Action Taken

ET MON

10 DOWNING STREET

LONDON SWIA 2AA

ec

HIQ

Mr Goodlad

FRth.

со

THE PRIME MINISTER

Dor for Ralph

4A

8 February 1993

Вике

M Mon 9/2

M. Blake Morg/in Me which rose

Thank you for your letter of 15 January about Ambassador Ma's

comments to you on Hong Kong.

Hong Kong is now a much more political place, and we need to respond

to the clear wish of the people there for a greater say in the running of their

own affairs. This is a key part of maintaining Hong Kong's vitality, and its

attractiveness to international investors.

It is not the case that we have moved away from the 1984 Sino-British

Joint Declaration. That remains the basis of our policy. Chris Patten's

proposals were carefully designed to be consistent with this agreement and with

China's Basic Law. It will be up to the Legislative Council to make the final

decisions later this year. Meanwhile, we have been urging the Chinese to sit

down with us and discuss the points on which we disagree. The right way to

resolve the dispute is by dialogue, not pressure tactics.

We will keep much in mind the interest of companies like yours who

have significant business prospects in China. Equally, we have responsibilities

to discharge in Hong Kong. I believe we can reconcile the two.

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