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4 JAN 1994

INDEX

GISTRY Action Fake DATE:

CC:

PF Ricketts

Hong Kong Department

23 December 1993

(without attachments) Mr Hum

Mr Fry, FED

Mr Larner, News Dept

PS/Mr Goodlad

MR GOODLAD'S VISIT TO HONG KONG:

7-9 JANUARY

1. I submit briefing for this visit, which was seen in draft by Mr Hum. We have kept this to the essentials, and linked it closely to programme items. The programme and Hong Kong's scene-setting telegram are at the front.

The

2. In terms of substance, the centre-piece for the visit will be the two hours we spend with the Governor and his Ad Hoc Group on the Friday afternoon, followed immediately by an informal ExCo at Government House. Brief No 1 provides a check-list for the Ad Hoc Group meeting. The main issue at both meetings will be the way ahead on the electoral issues, in preparation for the meeting of OPD (K) on 24 January. present position on the first-stage legislation is that LegCo are in the process of forming a Bills Committee. The expectation is that the Bill will pass without too much trouble, probably by Chinese New Year (mid-February). The one wild card is that Allen Lee's Liberals are backing away from their earlier support for the Bill: they have engaged a consultant to sound out views in their party before committing themselves.

3.

Before considering with the Governor's group the options for the second stage electoral issues, it would be worth discussing the issue of resuming contacts with China. The question of whether the Governor introduces his 1992 package, or the package incorporating concessions we were prepared to offer in the talks (the 1993 package for short), is unlikely to make much difference to the Chinese reaction in the short term. But it could affect the Chinese approach to their dealings with us more broadly over Hong Kong in the remaining years of the transition. So far, their reaction has been relatively restrained, and concentrated on the electoral issues and on threatening specifically British interests. It could broaden as well as become more harsh if they conclude we are going for broke on the 1992 proposals. There remains much to be

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