CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

TELNO 676

OF 181012Z MAY 93

INFO IMMEDIATE HONG KONG

CONFIDENTIAL

HICC

026/13.....

TO

25

065465

MDHIAN 1342

INFO PRIORITY UKREP JLG HONG KONG

MIPT: CALL BY LORD CALLAGHAN ON JIANG ZEMIN, 17 MAY

FOLLOWING IS SUMMARY RECORD OF LORD CALLAGHAN'S CALL ON JIANG ZEMIN PREPARED BY MR MICHAEL CALLAGHAN.

1.

THE UK WANTS A STABLE AND PROSPEROUS HONG KONG NOW AND IN THE

FUTURE. IT WOULD BE A FALSE ANALYSIS TO SUGGEST THAT THE UK IS

SEEKING TO MAKE DIFFICULTIES.

2 =

THE PROPOSALS THAT HAVE BEEN PUT FORWARD BY THE BRITISH ARE OPEN TO CHANGE. THE PHRASE WHICH HAS BEEN USED IS THAT THE PROPOSALS ARE NOT SET IN CONCRETE''.

IN

3. THE BRITISH GOVERNMENT HAS CERTAIN DIFFICULTIES AT HOME AND IN HONG KONG ON THIS ISSUE. IN HONG KONG THE ORDINARY VOTER WANTS MORE DEMOCRACY BUT THE BUSINESS COMMUNITY IS GENERALLY AGAINST. BRITAIN THERE IS PRESSURE FOR MORE DEMOCRACY IN HONG KONG. THE

ISSUE IS OFTEN PRESENTED AS BRITAIN FAVOURING MORE DEMOCRACY AND

CHINA OPPOSING HER EFFORTS. I KNOW THIS IS A SIMPLISTIC ANALYSIS.

4. CHINA WILL UNDERSTAND THAT IF THE UK MAKES PROPOSALS FOR MORE DEMOCRACY IT CANNOT WITHDRAW THEM UNDER PRESSURE FROM ANOTHER GOVERNMENT.

5.

MY INTEREST IN THIS MATTER IS TO FIND A WAY AHEAD IN ORDER THAT

GOOD LONG TERM RELATIONS BETWEEN BRITAIN AND CHINA CAN BE

SUSTAINED. HONG KONG IS A SIDE ISSUE.

6.

TRUST SHOULD BE RESTORED. IF THE PARTIES COULD MOVE AHEAD TO A

DISCUSSING OF THE SPECIFICS OF THE 1995 ELECTIONS THE BRITISH SIDE

WOULD BE SATISFIED.

7. THE CONSEQUENCES OF NOT REACHING AN AGREEMENT COULD BE BITTERNESS ON BOTH SIDES.

8=

I WOULD LIKE YOU TO CONSIDER THAT BY INDICATING YOUR AGREEMENT

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