CONFIDENTIAL

be equated with the earlier offer (which the Governor refused)

of an award from a San Francisco-based group who wished to

congratulate the Governor "on his work in encouraging democracy in China".

suggest that he

4. The Governor would like to accept this award during his

visit to the United States next week. His telegram considers the options of declining the offer as gracefully as possible, or accepting in principle but postponing until his next visit to the United States (probably in 1994). Given the provenance

of this offer he argues that it would be very difficult to

decline outright. I agree. But I am not convinced by the

arguments against postponing and in favour of accepting the

award next week.

5.

Ministers will recall that the use of the word "freedom"

by the Prime Minister and Mr Patten at the time of the

latter's appointment as Governor last April generated a particularly fierce reaction from the Chinese. While it is

true that the citation makes no reference to China, the fact

that it is a Freedom award from Freedom House and refers to a

free and democratic future for the people of Hong Kong is

likely to guarantee a neuralgic response from the Chinese. They will also see it as evidence to confirm their belief in a UK/US conspiracy against China (as described in Lee Quan Yew's recent unhelpful intervention). As the Governor says this is still likely to be so in 1994, but we cannot be certain; if

we had by then reached agreement with the Chinese on the

1994/95 elections, they might not be too upset by the award.

Whereas we can be reasonably certain that if the Governor accepts this award next week at this particularly sensitive stage between rounds 2 and 3 of our talks on constitutional matters the Chinese are likely to be extremely irritated.

And I do not think the award is likely to be "buried" among

sub.freedom.MORRIS

JEB

CONFIDENTIAL

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