February 1993

RECEIVED IN PRIVATE OFFICE

3 - FEB 100%

ACKD

Baroness Chalker

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Lord Shawcross GBE QC

60 Victoria Embarkmeit

London

ECHY QJP

foMinister FCO pape

Thank you for your letter of 28 January.

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2/2

I think we shall have to agree to differ on whether it would

have been better to hold consultations with the Chinese before

the Governor made the proposals public. I will only observe that recent experience with the course you advocate has not been

particularly promising. On the Court of Final Appeal we negotiated an agreement with the Chinese only to have if it rejected by the Hong Kong Legislature. On the New Airport we

signed a Memorandum of Understanding with the Chinese after long

negotiations, but the Chinese have been very obstructive in its

implementation, and there is still no agreement on financing the

Airport.

-

As I have said before the Governor's proposals are just that

proposals and certainly not "concluded proposals". We have made

clear that we would welcome counter-proposals and indeed there

have been many.

There have been some indications that the

Chinese are taking a more moderate line in public. We have told

them repeatedly, on every occasion, that we are ready for discussions on any aspect of the proposals, without

preconditions. We are serious about that.

But,

disappointingly, we have not yet had a response.

shaw.chalk2.DEM

ROD

BARONESS CHALKER OF WALLASEY

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