CODE 18-77

Reference...

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Mr Bristow Smith

FED

©

PEKING TELNO 64: VISIT TO PEKING BY THE SPANISH PRIME MINISTER

1.

You have asked us for input into a telegram giving Madrid a suggested line to take up with the Spanish before Mr Gonzalez' departure for Peking. On Hong Kong it would be helpful if the Ambassador could make the following points:-

- Hong Kong's success hinges on its economy. Overall economic picture positive (5% growth this year and next). South China economic development irreversible. But we also need to create the right political environment.

The

- On 7 October Mr Patten proposed a package of measures designed to develop vigorous democratic institutions in Hong Kong, while maintaining an efficient, executive-led Government. These were well received in Hong Kong. Governor plans to introduce legislation to the Legislative Council in February - it will be fully debated during the following months.

- The Chinese have over reacted to these modest proposals which do not conflict with the Joint Declaration or the Basic Law and which respond to a genuine desire for more democracy in Hong Kong.

- The British Government fully supports Mr Patten and his proposals for constitutional development. They represent the best way forward for Hong Kong and continue to command a high level of local support.

- No wish to give the impression of trying to orchestrate a public campaign against China. But helpful if you could take an opportunity during your forthcoming visit to China to emphasise the importance you attach to Hong Kong's continued stability and prosperity and the implementation of the Joint Declaration, and to tell the Chinese you support Mr Patten's proposals for increased democracy.

We will separately send Madrid off the peg unclassified background material.

2.

Woodrow

WD Barnes Jones (MR)

Hong Kong Department

25 January 1993

IND

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HKD 021/4

01 FEB 1995

gonzalez.BRIEF.JohnW

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